Held at the Kalimba Hotel in Kololi, the initiative was a result of the ARC’s vast experience and expertise in providing climate risk insurance support to its member countries. Participants are expected to learn about the role of ARC limited in developing micro and meso insurance in Africa; gain knowledge on micro and meso insurance standard scheme set ups; discuss premium financing strategies and more.
Deputising the Central Bank governor, Deputy Governor Dr. Paul J. Mendy explained that ARC Agency is a specialised agency of the African Union established in 2012 as an insurance company, saying that governments and member states are sovereign policyholders.
He added that this initiative was designed to improve responses and policy strategies with respect to climate change-related issues and address the issue of food security emergencies.
“Subsequently, considering certain limitations of the sovereign solutions, ARC Limited found it necessary to operate within member countries on a need basis with a view of developing a non-sovereign parametric macro stroke measure insurance scheme to complement the sovereign macro scheme.”
“Macro insurance policies are designed for individual policyholders or beneficiaries, mainly farmers. The Measure insurance policy is underwritten through aggregators including producers, associations, financial institutions, agribusinesses, and NGOs among others.”
Mendy continued that Parametric Insurance Policies are most frequently implemented in developing countries as a risk management tool in agriculture and usually targets low-income earners. The workshop, he said, is unique and important for The Gambia.
“It will potentially result in the formulation of major groundbreaking policies to boost financial inclusion while we endeavour to create a more climate resilient economy. Climate change is one of the most critical and devastating challenges globally, particularly in developing countries of which Sub-Saharan Africa is not an exception.”
He said that the move to conceive proactive proper economic policy measures which support the initiative to rekindle our agricultural sector is critical and timely, considering the significant contribution of agriculture to the country’s GDP and employment creation
Lesley Ndlovu, the chief executive officer of ARC, in a video statement, expressed delight for such an activity to be conducted in The Gambia in order to discuss the importance of Macro and Meso Insurance.
“It is universally acknowledged that there is an increase in natural disasters and this is most felt by the most vulnerable communities in the African continent, including smallholder farmers and households. To effectively address these challenges, we need to scale up and expand our insurance.”
Mr. Ndlovu further stated that the government of The Gambia is being exemplary in meeting the fight against climate change by working with all the stakeholders to mainstream insurance in accordance with the disaster risk management approach.
