Brooklyn, New York, October, 19 – Today Floodbase announced a partnership with African Risk Capacity Limited (ARC Ltd.) to develop, distribute, and scale parametric flood insurance solutions across Africa.
Flood risk in Africa is largely uninsured, resulting in economic fragility, agricultural instability, and community displacement. The sprawling nature of farmlands, along with the high-risk status of African countries, has made it difficult for insurers to structure adequate indemnity insurance.
To help close this insurance gap, ARC Ltd and Floodbase will develop parametric flood microinsurance products that can be scaled across Africa to cover smallholder farmers against agricultural risk. Unlike indemnity insurance, these products can pay out within days or weeks when the magnitude of flooding exceeds a predetermined threshold. They will be designed with predetermined pricing and payout thresholds based on Floodbase’s 23 years of observed flood history. This approach enables a country-wide agricultural flood solution for at-risk farmholders to support the population from ARC’s African Member States to recover more quickly from flood catastrophes.
“Since its inception in 2014, ARC has shown that the parametric insurance model works and is impactful. We’re excited to partner with Floodbase to complement our portfolio of innovative parametric solutions to support flood vulnerable communities across Africa, with the goal of helping them quickly rebuild and recover following damaging flood events” said David Maslo, Head of Business Development at ARC.
ARC Ltd.’s region-specific specialization and distribution network, in combination with Floodbase’s unmatched flood data and expertise enables a significant step forward in mitigating the impact of flooding, insuring previously uninsurable flood risk, and fostering resilience across the African continent.