ARC Replica


ARC Replica is run in partnership between Start Network, the Government of Senegal, African Risk Capacity (ARC) and the World Food Programme. It is funded by the German Federal Ministry for Economic Cooperation and Development (BMZ) through the German Development Bank, Kreditanstalt für Wiederaufbau (KfW).

Credit: Atmospheric Research CSIRO | commons.wikimedia.org

ABOUT THE PROGRAMME


African Risk Capacity (ARC) is an organisation mandated by the African Union to help African nations proactively manage climate-related humanitarian risks through macro-insurance. The ARC Replica programme allows non-governmental organisations like Start Network to work side-by-side with governments to manage these risks.

 

 

How it works

African Risk Capacity's (ARC) member states can purchase 'parametric' insurance policies from ARC Ltd, which means that payouts are automatically made for pre-approved contingency plans when pre-agreed scientific triggers are met. Non-governmental partners like Start Network can then purchase a replica insurance policy to complement this approach to disaster risk management. 

 

Start Network and the World Food Programme were the first designated partners of the ARC Replica initiative in 2018. Start Network purchased its first ARC Replica policy to protect against drought in Senegal in 2019, alongside the Senegalese government.

 

 

CASE STUDY: SENEGAL

 

Droughts are slow onset disasters. Yet, while it is possible to predict drought months in advance, the response is always reactive rather than proactive. Humanitarian assistance comes too late, often because funding hasn’t been put in place.

 

 

In July 2019, Start Network and the government of Senegal each purchased an insurance policy against drought. If rainfall levels dropped below a pre-defined threshold, Start Network members and the government of Senegal would receive payouts to implement timely and coordinated actions to protect communities at risk.

 

When the pre-agreed triggers were met in November 2019, a payout of US $12.5m was made to the Government of Senegal and another US $10.6m was paid to Start Network. The payout to Start Network remains the largest-ever funding allocation to civil society for early humanitarian action.

 

Throughout 2020, six Start Network members – Action Against Hunger, Catholic Relief Services, Oxfam, Plan International, Save the Children and World Vision – worked alongside the government of Senegal to deliver assistance to Senegalese families ahead of a severe large-scale drought. The agencies distributed enriched flour and made cash transfers to more than 335,000 people across seven regions. This enabled families to protect livestock and other valuable assets and avoid resorting to ‘negative coping strategies’, such as skipping meals or sending children to work instead of school. The COVID-19 pandemic exacerbated needs and agencies took the opportunity to broadcast hygiene and sanitation messaging to help mitigate the spread of the virus.

 

 

THE RESULTS

Start Network undertook a comprehensive evaluation to review the impact of the payout on the members who received funding and the communities reached. A mixed method approach was taken, including data collection from implementing agencies, government stakeholders, and three rounds of randomised, representative telephone-based surveys with communities.

 

 

LOOKING AHEAD

Thanks to further funding provided by BMZ through KFW, Start Network is now working to purchase a policy in Senegal in 2021, and to expand the programme to other African country such as Zimbabwe.

 

 

Latest


News Article

Une Approche Innovante de L'assurance Permet aux Organisations Humanitaires de Gerer les Risques Climatiques de Maniere Proactive a Grande Echelle

Un nouveau rapport publié aujourd'hui montre de quelle façon les assurances peuvent aider les gouvernements et les organisations à prévoir et à gérer de manière proactive et à grande échelle, les risques humanitaires liés aux changements climatiques. Ce rapport publié par le Start Network, un réseau mondial d'ONG humanitaires, se base sur une évaluation exhaustive du programme mené par le réseau au Sénégal, qui a utilisé une police d'« assurance paramétrique » pour verser une indemnité avant que les pires effets d'une sécheresse ne se fassent ressentir.

24Feb21

News Article

In Senegal, the village of Ndouff rises from its own ashes

In November 2019, the Government of Senegal and the ARC Replica partner, Start Network, qualified for an ARC insurance payout following the drought conditions that prevailed during the agricultural season. In October 2020, ARC and Start Network travelled to the village of Ndouff, located at 70km from Dakar, the Senegalese capital, to interact with the community on the benefits and impacts of the payout in their lives.

09Oct20

Blog Post

Strengths and challenges of coordinated humanitarian response

Coordination is one of the areas where the design of the Start Network’s ARC Replica pay-out in Senegal has been most ambitious.

29Jul20

Blog Post

ARC Replica Pay-out Senegal 2020

The Start Network’s $10.6m ARC Replica pay-out in Senegal is being used to support the food security and livelihoods of more than 27,000 households across seven regions of Senegal. 

14Jul20

Blog Post

Learning from ARC Replica in Senegal

Through ARC Replica, Start Network has sought to introduce this new financing approach to the NGO community, while protecting communities at risk of drought in Senegal.

08Jul20

Blog Post

Preparing for disaster in Senegal

Like many villages in the heart of Senegal’s semi-arid Diourbel region, Yassi Gueye features a covering of sand, towering baobab trees and staggering heat. It has not rained since October, and everything on the desert-like earth has dried up.

06Jul20

News Article

Charities distribute aid as part of early response to food insecurity in Senegal

Humanitarian agencies in Senegal are this week distributing aid as part of an early response to food shortage, which has been caused by the late onset of rainfall last year. This early action will help alleviate the suffering of those affected and reduce the need for them to resort to negative coping actions such as taking children out of schools, eating their seeds, and migrating or selling their farming implements.

28Apr20

News Article

ARC Replica Insurance Payout: Kick-off meeting

Last week a kick-off meeting took place in Dakar, Senegal between Start Network NGOs and the government of Senegal to officially launch the beginning of Replica payout activities.

31Jan20

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