CASE STUDY: 2022 IMPACT 

A year of impact & value – a record US$60m in payouts   2022 was the year in which ARC Ltd. intentionally set out to demonstrate value, impact and meaning on the African continent. Already in Q1, our mission to be impactful was evident with the highest payout in our history – $10.7m to the Madagascar Government, following the devastation of Tropical Cyclone Batsirai, which made landfall on 5 February. It claimed the lives of 121 people and displaced more than 61 500. The rapid payout ensured an early response, supporting the government’s emergency relief and recovery efforts in the country. Additionally, Madagascar had been impacted by food and water shortages and water-borne diseases.   By the end of 2022, we had succeeded in our intention with a record disbursement of $60m for 14 payouts – the highest amount we have ever paid out in a single year. The 2022 payouts went to:  Since its inception in 2014, ARC Ltd. has paid out a total of $125m in claims from eight risk pools. Currently, we cover more than 18 million people in Africa and although the need is far greater, our mission, to reiterate, is to cover 200 million by 2025. This significant impact of 2022 will now also be extended in 2023 due to the addition of two new perils – flood risk and outbreaks and epidemics.  Delivering value  We measure our impact by evaluating how effectively we have served the needs of vulnerable populations in our member states. ARC Ltd.’s gross payouts are derived from actual rainfall estimates from the beginning of the season to the latest dekadal (10-day) precipitation observed. We apply previously observed rainfall data from 2001, which is then used to create estimates of drought response costs and payouts. We also aim to strengthen the commercial capacity of insurance markets in Africa through our micro/meso product.