Global broking and advisory firm Gallagher Re has been selected as the reinsurance broker and risk advisor for African Risk Capacity Limited (ARC), the specialist insurance company which provides parametric insurance cover to African countries against climate and disaster events.
The appointment includes the placement of portfolio cover in the reinsurance and capital markets by 1 May 2023, and the provision of strategic advisory for sustainable growth and portfolio diversification.
ARC’s growth plans foresee combined use of traditional and alternative capacity providers as part of a risk carrier structure that aims to leverage the private sector for a wide range of resilience applications across Africa.
“We are deeply honoured to be selected by ARC Ltd to support its critical mission of promoting resilience solutions across Africa. We feel passionate about ARC, what it stands for and the actual impact it is making on livelihoods on the ground,” said Antoine Bavandi, Global Head of Public Sector, Parametric & Climate Resilience Solutions at Gallagher Re.
“ARC Ltd’s mission in particular resonates extremely well with our vision for climate resilience by leveraging traditional markets as well as ILS and ESG capital to support African Union countries with the most efficient risk solutions,” Bavandi continued. “We very much look forward to applying our expertise for the benefits of public and private sector clients, to continue to push for scaled-up resilience solutions.”
Malvern Chirume, Chief Underwriting Officer of ARC, also commented: “The emergence of new risks and the high degree of global interconnectedness offer a unique opportunity to rethink our approach to climate and systemic events on the African continent.”
“ARC Group plays a critical role in this environment, strengthening the capacity of member states to minimise the risk and actual impact from these events, and providing targeted and swift access to finance, tools and products in the aftermath of disasters,” Chirume went on.
“To date, ARC Ltd has provided financial protection in excess of USD 1 billion to 19 countries. We aim to reduce the protection gap even further and our partnership with Gallagher Re will be a key element of our growth.”