The African Risk Capacity (ARC) Group, a provider of parametric disaster insurance products and risk pooling for countries and other entities in Africa, has made just over $11.6 million in payouts to Malawi and a replica partner the United Nations High Commissioner for Refugees (UNHCR) after drought triggered its parametric insurance there.
The Republic of Malawi had purchased an anticipatory sovereign parametric insurance policy to cover it against drought with ARC Ltd, the insurance affiliate of the ARC Group, for the 2023/2024 growing season.
The El Niño-driven drought had already caused ARC to make payouts of US $32 million payout to benefit Zimbabwe after that countries parametric drought cover was triggered.
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