Independent report

Evaluation of African Risk Capacity

African Risk Capacity (ARC) Evaluation, Phase 1


African Risk Capacity


The African Risk Capacity (ARC) was established by the African Union (AU) in 2012 as an African-owned, index-based weather risk insurance pool and early response mechanism that combines the concepts of early warning, disaster risk management, and risk finance. ARC’s mission is to develop a pan-African natural disaster response system that enables African governments to meet the needs of people at risk to natural disasters (ARC 2016). ARC is comprised of two entities: ARC Agency and ARC Limited. The ARC Agency is the capacity building, educational, and advocacy arm of ARC, responsible for making AU Member States and the broader public aware of ARC’s mission and goals. Engagement of countries with ARC includes a 9-12 month capacity building programme on the elements of early warning, risk modelling (particularly Africa RiskView (ARV), ARC’s proprietary software application which combines historical rainfall data with vulnerability data to estimate drought-related response costs and define triggers for the parametric insurance), contingency planning, disaster risk management and risk financing. ARC Limited is a sovereign-level mutual insurance company that provides weather-related insurance coverage to Member States.

Published 15 May 2018