ARC launches a parametric insurance product against tropical cyclones

African Risk Capacity Insurance Company (ARC) has developed a parametric insurance product against tropical cyclones in East Africa. The policy is based on a model that estimates the risk and economic losses caused by such climatic phenomena.

The coverage is deployed in East African countries including Mozambique, Madagascar, Comoros, Mauritius, Seychelles and Tanzania. Madagascar being the first country to underwrite the new policy.

Created in 2012 by the African Union, the ARC is a specialized agency whose mission is to help member states limit the effects of extreme weather events.

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