Africa Specialty Risks (ASR) has reportedly formed a parametric reinsurance partnership with a leading European reinsurer to increase its coverage for vulnerable populations and economies in Africa and the Middle East. The partnership was facilitated by Inver Re.
According to ASR, the agreement will double its parametric capability for smallholder farmers, natural perils and renewables, with the prospect of further expansion in the future.
ASR noted that its parametric approach to reinsurance “facilitates the flow of capital” to support vulnerable populations.
“The region has already benefitted from efforts in recent years by ASR’s parametric division, providing resilience and paying for claims on weather, climate, and seismic risks, as exemplified through ASR’s Mozambique Cyclone Parametric Reinsurance Program,” ASR observed.
Dr Raveem Ismail, Head of Parametric Underwriting, ASR, commented, “This partnership really is a step forward. Although there have been efforts to increase the flow of reinsurance capital into Africa over the past decade, few have come in the context of a commercial entity specifically focused on risks in the region.
“ASR is fully committed to Africa and the Middle East and we are delighted to be able to double our parametric capabilities.”
Tom Johansmeyer, Global Head of Index, Inver Re, added, “It has been an honour and a pleasure to support this new partnership. While many are shy of the challenges associated with risks in the Global South, the opportunity is significant, and creative thinking can make it more attainable.
“This partnership, built on the strength of ASR’s index development and deal sourcing capabilities and both party’s commitment to Africa and the Middle East, should serve as a model for expanding worldwide reinsurance support for risks in the Global South.”
