VisionFund in 2020 – The ARDIS pays out
Protecting over 4 million beneficiaries in six countries (Cambodia, Kenya, Mali, Malawi, Myanmar and Zambia) from the impacts of drought and tropical cyclone to their livelihoods, the Africa Asia and Americas Resilience in Disaster Insurance Scheme (ARDIS) was considered the world’s largest non-governmental climate insurance program. Without the work of Global Parametrics, the risk capital support of the Natural Disaster Fund (NDF), and the contingent credit facility provided by the InsuResilience Investment Fund (IIF), initiated by KfW, the German Development Bank on behalf of the German Ministry for Economic Cooperation and Development (BMZ), this would not have been possible.
The program has continued to grow, and in 2020 now covers 15 countries on three continents (Kenya, Mali, Malawi, Zambia, Mexico, Dominican Republic, Guatemala, Honduras, Bolivia, Ecuador, India, Myanmar, Philippines, Sri Lanka, Vietnam) for one or more of the impacts of Tropical Cyclone, Earthquake, Excess Rain, Drought and Flood.
Over the last few months the ARDIS program has activated four times, providing a direct capital payment of USD 315,000 from the NDF and access to up to USD 3,950,000 of contingent credit from the facility:
- August – Flooding in Central Myanmar – activated the contingent credit facility
- October – Seasonal drought in the North and South of Myanmar – activated the contingent credit facility and received payment from the NDF
- November – Tropical Cyclone Vamco in Vietnam – activated the contingent credit facility and received payment from the NDF
- November – Hurricane Iota in Honduras – activated the contingent credit facility and received payment from the NDF
This year (so far) the ARDIS program will permit VFI to implement recovery lending for up to 675,000 active borrowers (impacting up to 4 million beneficiaries) in three continents – all also significantly impacted by COVID-19.