16 ARC’s early, rapid, targeted intervention drives significant economic advantages over traditional emergency responses. ARC Ltd., as the financial and commercial affiliate of the ARC Group, assists member states with risk pooling and transfer facilities, enabling them to fortify their disaster risk management programmes and, in the event of a disaster, gain quick access to funds to mobilise emergency aid and rebuilding efforts. By pooling members’ disaster risks, the risk is shared, resulting in lower individual premium costs. Our cost-benefit analysis found nearly $2 of economic gain for every $1 spent on premiums by participating countries. Having started with four participating countries in the 2014/2015 risk pool, we now cover 17 countries and have issued 178 policies in our sovereign business and 32 policies in our non-sovereign business. CREATING VALUE CHANGING THE RESPONSE MECHANISM -3 -1 1 Harvest TIMELINE (MONTHS) ESTIMATE IMPACT RESPONSE ARC PAYOUTS RESPONSE 3 5 7 -2 2 4 6 8 9 ARC MODELLING SCALE UP SAFETY NETS ASSESSMENT APPEAL FUNDING KEY FEATURES OF THE ARC MECHANISM SPEED COST TARGETING » Eat less preferred foods » Other work » Use savings and borrow » Sell non-productive assets Reduce food intake Sell productive assets PRE-HARVEST UP TO 3 MONTHS 3 – 5 MONTHS 5 MONTHS + HOUSEHOLD COPING MECHANISMS CURRENT EMERGENCY RESPONSE AFRICAN RISK CAPACITY CREAT I NG VALUE
RkJQdWJsaXNoZXIy MTM3NDM0