African Risk Capacity (ARC) has made a $5.5 million drought insurance payout in Somalia, triggered by confirmed parametric indices.
The payout was made to the Government of Somalia (SODMA) (62.7% of the total), Start Network (21.5%) and WFP (15.8%).
Combined, the three organisations have reportedly supported more than 153,000 people through the parametric insurance payout as of May 2026.
Somalia is facing a severe humanitarian crisis driven by a combination of below-average rainfall, rising food and fuel prices, conflict and insecurity, large-scale displacement, and significant humanitarian funding shortfalls.
The failed 2025 Deyr (October–December) season and the weak 2026 Gu (April–June) season have further worsened drought conditions across pastoral and agropastoral areas, increasing pressure on livelihoods and food access.
As of May 2026, an estimated 6.03 million people (31% of the analysed population) are facing acute food insecurity, with a credible risk of famine identified in Burhakaba District, Bay Region. Humanitarian assistance remains critically insufficient to meet growing needs.
