African Risk Capacity Ltd. Appoints Gallagher Re for Parametric Climate Solutions

African Risk Capacity Limited (ARC Ltd.) has appointed Gallagher Re as its reinsurance broker and risk adviser to address climate and food insecurity risks across Africa. Gallagher Re's role will involve managing portfolio coverage within the reinsurance and capital markets, with a focus on ARC Ltd.'s goals for sustainable growth and diversification through alternative risk transfer mechanisms such as insurance-linked securities. 

ARC Ltd., a specialized insurer that provides parametric insurance for climate and disaster risks, works to support African countries facing severe climate impacts. In the face of rapid population growth and urbanization, ARC Ltd.'s approach blends traditional and alternative risk providers to encourage private sector involvement in resilience projects across the continent. 

The collaboration follows a memorandum of understanding (MoU) signed at COP27 between ARC Ltd., CCRIF SPC (formerly the Caribbean Catastrophe Risk Insurance Facility), and the Pacific Catastrophe Risk Insurance Company (PCRIC). This MoU seeks to expand the influence and reach of these developmental insurance risk pools, providing vital financial resilience for nations at risk of climate-related losses. 

Malvern Chirume, ARC Ltd.'s chief underwriting officer, said, "The emergence of new risks and the high degree of global interconnectedness offer a unique opportunity to rethink our approach to climate and systemic events on the African continent. ARC Group plays a critical role in this environment, strengthening the capacity of member states to minimize the risk and actual impact from these events and providing targeted and swift access to finance, tools, and products in the aftermath of disasters. To date, ARC Ltd. has provided financial protection in excess of $1 billion to 19 countries. We aim to reduce the protection gap even further."