A global network of humanitarian agencies, including Catholic Relief Services, Save the Children, Action Against Hunger, Plan, Oxfam and World Vision, have signed a climate risk insurance policy that will protect up to 160,000 people in Senegal against the effects of drought. One of the first of its kind, the policy will allow aid agencies to provide life-saving support to people in Senegal as soon as a drought is announced, helping to prevent famine.
The US $ 1.5 million policy, signed by Start Network, a global network of more than 50 humanitarian agencies, and provided by African Risk Capacity, relies on “parametric” insurance. This means that it pays before a crisis, on the basis of previously agreed scientific triggers, for example based on rainfall data. Unlike the current model, in which aid agencies receive funds only after a crisis has struck, it allows organizations to plan for and mitigate the worst effects of a drought.
A similar policy has been signed for the 2019/2020 growing season and a payment of USD 10.6 million has helped support over 300,000 people. In 2020, the payment enabled families to protect livestock and other valuable assets and avoid resorting to ‘negative coping strategies, such as skipping meals or sending children to work instead of. school “. The new policy announced today complements that purchased by the government of Senegal, to ensure the protection of as many people as possible, a total of over 500,000 people.
Christina Bennett, CEO of Start Network, said: “We are delighted to be working again with African Risk Capacity to provide this protection to Senegalese populations at risk during the next drought. Slow funding for aid is one of the biggest structural problems in disaster response efforts, yet the majority of crises can be predicted. And with the effects of the climate emergency on the world’s most vulnerable, the need for a new approach is more urgent than ever. We urge governments ahead of COP26 to fund proactive humanitarian action that can intervene before risks turn into disasters, to save more lives. “*
“We have consistently proven that parametric insurance coverage is a valuable tool to protect the lives and livelihoods of vulnerable communities in the event of natural perils. We are delighted that our collaboration with partners like Start Network is helping Senegal and other countries access extended risk coverage beyond that purchased by themselves. As we aim to cover the entire region, we call on our development partners to support this model and facilitate the participation of other countries for a well-coordinated and rapid response to climate-risk events ”, said Lesley Ndlovu, CEO of African Risk Capacity.
Start Network will also purchase a similar policy for Zimbabwe later this year, in partnership with African Risk Capacity, the government of Zimbabwe and the World Food Program. The initiative in Senegal is funded by the German Federal Ministry for Economic Cooperation and Development (BMZ) through the German Development Bank, Kreditanstalt für Wiederaufbau (KfW).
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Notes to Editors
For more information contact: Helen James, Communications and Digital Manager, Start Network [email protected]
Available for interview:
- Amadou Diallo, Regional Coordinator of Start Network for West Africa
- Lesley Ndlovu, CEO African Risk Capacity
Start the network:www.startnetwork.org @startnetwork | Start Network is a global network of non-governmental organizations, made up of more than 50 national and international aid agencies from five continents. Its mission is to create a new era of humanitarian action that will save even more lives through innovation, rapid funding, early action and localization. Start Network believes that preventive climate risk finance could revolutionize the aid sector and catalyze a new way to prepare for crises, helping to build more resilient communities. Visit our website to see afull list of members.
African Risk Capacity – www.africanriskcapacity.org
The African Risk Capacity (ARC) group consists of the ARC Agency and the ARC Insurance Company Limited (ARC Ltd). The ARC Agency was established in 2012 as a specialized agency of the African Union to help member states improve their capacities to better plan, prepare for and respond to weather-related disasters. ARC Ltd is a mutual insurance company which provides risk transfer services to Member States through risk pooling and access to reinsurance markets. ARC was created on the premise that investing in preparedness and early warning through an innovative financing approach is highly profitable and can save up to four dollars for every dollar invested ex ante.
With the support of the United Kingdom, Germany, Sweden, Switzerland, Canada, France, the European Union, the Rockefeller Foundation and the United States, the ARC assists states AU members to reduce the risk of loss and damage caused by extreme weather events. affecting the people of Africa by providing, through sovereign disaster risk insurance, targeted responses to natural disasters in a more timely, cost-effective, objective and transparent manner. ARC is now using its expertise to help tackle some of the other most significant threats facing the continent, including floods, epidemics and epidemics.
Since 2014, 62 policies have been signed by member states for cumulative insurance coverage of US $ 719 million for the protection of 72 million vulnerable populations in participating countries.
For more information, please visit: //www.africanriskcapacity.org/ Please follow us on social media:
Start Network is a global network of humanitarian NGOs, catalyzing a new era of humanitarian action.