79 A DECADE OF PROTECTING AFRICA’S MOST VULNERABLE Our initial focus was on drought insurance, one of the most prevalent hazards on the continent, and our entry point was forging partnerships with governments, as we believed this would be the most effective way to make progress. It proved the correct approach, and we have since successfully built and nurtured these relationships, resulting in 39 member states signed up across Africa. Among our greatest challenges from the outset was tackling the lack of insurance knowledge and creating an understanding of howparametric insurance fits into disaster risk management. Working closely with governments, we have made significant inroads in creating awareness, while motivating for a transition from the appeals-based humanitarian model to parametric insurance. There have also been challenges around grasping the insurance products, and within our business there have been some challenges with data quality, as the data we work with is generated and supplied by third parties. Despite all this, ARC Ltd. has proven itself as a trusted climate risk solution provider in Africa and the highlights over the last decade are many. Ten years ago, ARC Ltd. was established with a unique mandate from the African Union to provide insurance and risk transfer solutions exclusively for African countries to help manage the increasing climate change risks on the continent. Impact As at 31/12/2023, we have paid over $170m, with the highest payout in our history in 2021 – almost $60 million – channelled to our member states and Replica partners. Five million people across seven countries benefitted, namely Côte d’Ivoire, Madagascar, Malawi, Mauritania, Niger, Senegal and Zimbabwe. We also underwrote a record $25 million in premiums for Pool 10A, the highest since our inception. Through this pool, we provided drought coverage to 13.4 million people in Africa. We are pleased that behind all the figures are communities that have benefited and that we have managed to increase the number of people covered threefold in the last few years. We are also encouraged to see an increase in the number of countries utilising insurance as part of their disaster risk financing matrix. Additionally, in the past 10 years, we have made significant progress in shifting the dial from reactive disaster risk management and financing to a more proactive approach, demonstrating our impact across the entire ARC group. 1 0TH ANN I VERSARY : H I GHL I GHTS FROM THE PAST 1 0 YEARS
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