APO

Launch of the First Parametric Tropical Cyclone Risk Insurance Product in Africa

Published

on

The African Risk Capacity (ARC) Group is proposing a new insurance mechanism to African countries in the South West Indian Ocean (SWIO) region to cope with the devastating effects of the tropical cyclones. This parametric insurance product will provide countries with predictable and rapid financing for early response to cope with emergency situations caused by tropical cyclones. The mechanism is a significant milestone to building resilience to climate-related disasters on the African continent.

The Southwest Indian Ocean Region (SWIO) region is one of the most active areas globally in terms of tropical cyclone formation. On average, thirteen cyclone events with wind speeds above 63 km/h and possibly exceeding 200 km/h, occur each year in the SWIO region. High wind speeds are a key factor contributing to damages from tropical cyclones.

Developments in the SWIO region in 2019, including the devastating effects of cyclones Idai and Kenneth in Mozambique, led to a renewed country interest in parametric tropical cyclone insurance coverage. Consequently, ARC developed a model capable of accurately estimating the risk and economic losses due to tropical cyclone events adapted to the SWIO countries such as Mozambique, Madagascar, Comoros, Mauritius, Seychelles, and Tanzania.

“Our goal is to continue to diversify our product offering to meet the needs of our Member States effectively. This new offer will allow our Member States to better anticipate and manage extreme weather events while ensuring that their impact on the population is mitigated, “ stated UN-ASG and African Risk Capacity Group Director-General, Ibrahima Cheikh Diong.

Madagascar became the first country in the region to take out the ARC tropical cyclone parametric insurance coverage, thanks to the KfW premium support for the 2020-2021 season. Madagascar’s participation will complement government efforts towards reducing the impacts of climate change and weather variability on the most vulnerable populations.

Indeed, Madagascar, the largest island in Africa, is naturally prone to cyclones. According to UNOCHA, an average of 1.5 cyclones affect Madagascar each year, the highest number in Africa, and each severe cyclone affects an average of 700,000 people.

“As part of the implementation of the national policy on disaster risk management, Madagascar has subscribed to the new insurance product against Tropical Cyclones offered by the ARC Group to better protect the population against the enormous damage caused by extreme climatic events but also allow the country to recover quickly when affected by cyclones,” declared H.E. Richard Randriamandrato, Minister of the Economy and Finance, Republic of Madagascar.

NNN

NNN: :is a Nigerian online news portal that publishes breaking news in Nigeria, and across the world. Our journalists are honest, fair, accurate, thorough and courageous in gathering, reporting and interpreting news in the best interest of the public, because truth is the cornerstone of journalism and they strive diligently to ascertain the truth in every news report. Contact: editor[at]nnn.com.ng

Latest News

Senegal already produces Gas: Investors should look Onshore Ogun Govt plans to upgrade Staff Development Centre to Public Service College Concerned about reports of violence ahead of Uganda elections, Secretary-General calls on all national stakeholders to ensure polls are inclusive, peaceful Coronavirus – Rwanda: COVID-19 update (13 January 2021) Coronavirus – Nigeria: COVID-19 update (13 January 2021) OUT NOW! 2nd Edition of “Billions At Play” charts recovery path for African Oil & Gas Sector Coronavirus – Kenya: COVID-19 update (13 January 2021) WHO Eritrea supports the Ministry of Health maternity waiting homes in remote areas with essential supplies atingi eLearning platform reaches nearly 1 Million African youth in 1st year Africa COVID-19 cases top 3 million, first wave peak surpassed WHO Africa Online Press Briefing on COVID-19 in Africa The spectacular rise of Dubai Multi Commodities Centre (DMCC) under Ahmed Sultan Bin Sulayem Safeguard yourself from falling victim to online trading scams Coronavirus – Gambia: COVID-19 update (13 January 2021) WHO Africa Online Press Briefing on COVID-19 in Africa Please Help Bobi Wine and the People of Uganda Urge the International Community to Play an Active Role Calling on The Uganda Government to Hold Free and Fair Elections Without Intimidation and Violence Underhand tactics suspected in race for Confederation of African Football (CAF) presidency African Business Council applauds the start of trading on the basis of the African Continental Free Trade Area (AfCFTA) Bank of Khyber transforms to Temenos Core and Digital Banking Platform Within the Framework of Cooperation between the Arab Republic of Egypt and the International Islamic Trade Finance Corporation: Five Ministers Witness the Signing of ITFC’s 2021 Program Totaling US$ 1.1 Billion Aimed at Providing Integrated Trade Solutions to Egypt Coronavirus – Zimbabwe: COVID-19 Update (12th January 2021) Coronavirus – Malawi: COVID-19 update (12 January 2021) Coronavirus – Uganda: COVID-19 update (12 January 2021) Switzerland and The Gambia sign cooperation agreements on migration and civil aviation Coronavirus – Ethiopia: COVID-19 update (12th January 2021) Coronavirus – Rwanda: COVID-19 update (12 January 2021) How Nigerian Entrepreneur Oke Afolabi is Accelerating Digitalization of Banks in Nigeria Coronavirus – South Africa: COVID-19 update (12 January 2021) Africa: the most ‘ready-for-circularity’ continent? Ending Violence in Mozambique Will Require United Effort; African Energy Chamber Stands Ready to Assist (By NJ Ayuk) BREAKING: WHO DG, Tedros Ghebreyesus, Ghana’s President, Akufo-Addo, Mo Ibrahim, Graca Machel, Others, Emerge Winners In The ALM Persons Of The Year 2020 Awards UN agencies and partners establish global Ebola vaccine stockpile IMF Executive Board completes first and second reviews of the Central African Republic’s arrangement under the Extended Credit Facility and approves US$ 34.4 Million disbursement Coronavirus – Nigeria: COVID-19 update (12 January 2021) Humanitarian crisis looms in Southern Madagascar as drought and pandemic double number of hungry people DHL Global Forwarding invests 126.5 million rand in new facility in South Africa H.E. Mokgweetsi Masisi, President of Botswana confirmed for Mining Indaba Virtual Coronavirus – Uganda: COVID-19 update (11 January 2021) Coronavirus – South Africa: COVID-19 update (11 January 2021) Coronavirus – Rwanda: COVID-19 update (11 January 2021) Ethiopia: MSF provides medical assistance to some of the most affected people in Tigray Militants continue to stage deadly attacks as insecurity expands into previously ‘safe’ zones in West Africa, Sahel, top official tells Security Council World Bank plans to invest over $5 Billion in Drylands in Africa Control Risks announces the Top 5 Risks for Business in 2021 Coronavirus: African Union Member States reporting COVID-19 cases as of 11 January 2021, 6 pm EAT Coronavirus – Malawi: COVID-19 update (11 January 2021) Coronavirus – Zambia: COVID-19 update (11 January 2021) COP26 Roundtable: ‘2021 will be critical in the fight against COVID-19 and climate change’ – UN Secretary-General António Guterres Coronavirus – Kenya: COVID-19 update (11 January 2021) Coronavirus – Nigeria: COVID-19 update (11 January 2021)