African Risk Capacity (ARC) is an organisation mandated by the African Union to help African nations proactively manage natural disaster risk through macro-insurance.
About ARC Replica Programme
ARC Replica allows us (Start Network) to work side by side with the government on risk identification, planning and to take out a parallel macro-insurance policy, which is intended to payout in the event of major droughts. With this payout, Start Network members can roll out preventative humanitarian operations alongside the government to mitigate the predicted impacts of drought.
Member States can purchase drought insurance policies from ARC Ltd, and receive payouts for pre-approved contingency plans. Replica Insurance supports, complements and builds on this approach to disaster risk management. Non-governmental partners (like the Start Network) are supported by donors to pay parallel insurance premiums. If rainfall levels drop below a pre-defined threshold, Start Network members receive payouts at the same time as the government, to implement timely and coordinated actions to protect communities at risk.
The Start Network and World Food Programme are the first designated partners of the ARC Replica initiative. This initiative is being piloted until the end of 2019 with support from the German Government (KFW).
ARC Replica is run in a partnership between Start Network, the Government of Senegal, African Risk Capacity (ARC), and the World Food Programme, funded by the German Federal Ministry for Economic Cooperation and Development (BMZ) through the German Development Bank, Kreditanstalt für Wiederaufbau (KfW).