ARC Replica: Transforming Insurance to Finance Loss and Damage

Start Network receives $8.9 million ARC Replica payout in response to drought in Zimbabwe, reaching over 180,000 people. 

Years of fossil fuel extraction by countries in the Global North have driven record levels of global warming, fuelling an increase in extreme weather events disproportionately impacting the world’s most vulnerable people. The failure to invest in disaster preparedness and risk management has escalated the impact of climate-related crises for communities particularly in the Global South, unable to adapt to the impacts of climate change. 

Whilst negotiations at the latest Conference of Parties (COP) saw an increasing number of countries commit funding to loss and damage, the combined total represented only 0.2% of the estimated losses already incurred. Amidst record funding cuts to international aid from major institutional donors, the humanitarian sector has been left to respond to increasing climate risks and growing vulnerabilities with dramatically reduced budgets. With funding falling far short of the estimated need, the sector urgently needs to use available funds with greater efficiency. 

This case study explores the impact of Start Network and the ARC Replica programme in Zimbabwe, highlighting its role in enhancing financial resilience for large scale crises, and advocating for greater investment and collaboration between civil society and the private sector to drive more innovative approaches to loss and damage.