ARC launches an insurance cover against Ebola

The insurance African pool for natural catastrophes African Risk Capacity (ARC) will offer,an insurance guarantee against the epidemy Ebola in 2017. In 2014, the disease claimed the life of more than 8 600 persons mainly in West Africa ( Sierra Leone, Guinea, Liberia).

The agency set up in late 2013, has already created a cover against drought risk. Other projects covering flood and cyclone risks are under study. Senegal, which is suffering drought once every 20 years, will receive 16.5 million USD in indemnities, that is a third of the total cost of damage caused by the last claim of this type.

Furthermore, the agency will be equipped with a system to control insured sums paid to each state following the occurrence of each covered event. Thus, governments will prove, in a 120-day deadline that indemnities have actually been paid to the the population affected by the catastrophe.

As a reminder, ARC Ltd is a mutual insurance company established by the African Union with a seed capital of 200 million USD provided by European institutions.