Key natural disaster insurance schemes in Africa

Most African countries do not yet have national insurance mechanisms to cover natural disaster risks. However, some countries have begun to establish specific frameworks, such as Morocco, Algeria, and South Africa.

In 2020, Morocco adopted the EVCAT (Catastrophic Events) scheme, established by Law No. 110-14. This plan introduced coverage against the consequences of catastrophic events.
The system is based on two complementary mechanisms: mandatory insurance coverage integrated into existing insurance contracts and a Solidarity Fund against Catastrophic Events (FSEC) designed for uninsured individuals.

According to the World Bank, this scheme, which covers 17 million people, raised 90 million USD between 2020 and 2023 through contributions linked to insurance contracts.

Algeria has also had a mandatory natural disaster insurance scheme in place since 2003, established by Ordinance 03-12 of 26 August 2003 (JORA No. 52/2003).

This plan was established following the Boumerdes earthquake in May 2003, which claimed nearly 3 000 lives and caused significant property damage. The coverage specifically includes damage to real estate as well as to industrial and commercial activities.

Unlike Morocco and Algeria, South Africa does not have a unified national system specifically dedicated to natural disaster insurance. Coverage for these risks relies primarily on the private insurance market through coverage included in non-life insurance policies.

Home and comprehensive insurance policies generally cover several natural hazards, including floods, storms, high winds, hail, landslides, ground subsidence, and, in some cases, earthquakes.

In response to the intensification of climate risks, the South African National Treasury devised a strategy in August 2025 aimed at strengthening insurance coverage for these risks. This approach notably includes the development of parametric insurance.

At the regional level, the African Risk Capacity (ARC) offers parametric products covering drought, tropical cyclones, floods, and epidemics. ARC has 39 member countries and has mobilized more than 700 million USD in coverage since 2014.