WFP purchases innovative climate risk insurance policies to protect over 1 million people in West Africa from catastrophic drought
In August 2019, the United Nation’s World Food Programme (WFP) signed policies for Mali, Mauritania, Burkina Faso and the Gambia. These policies will unleash funds to assist vulnerable communities threatened by drought before it reaches catastrophic levels.
Collectively, the purchased policies could release a total of US$ 32.5 million across the four countries. WFP has purchased these “replica” climate risk insurance policies from the African Union’s Africa Risk Capacity (ARC), complementing those purchased by national governments.
This initiative, which is known under the name ‘ARC Replica’ allows humanitarian agencies to quickly access and channel financing to vulnerable people in the event of an extreme drought.
“ARC Replica is strengthening the insurance coverage offered by ARC by increasing the sum insured for Mali,” explains WFP Country Director, Silvia Caruso. “This increases the number of people that will benefit from a payout in the case of a major drought.”
This financing helps to protect livestock and other assets, and to supplement feeding programs for undernourished children. To ensure assistance reaches people in need quickly, WFP has worked with each insured country to identify how resources and assistance can most efficiently be delivered.
Written by World Food Programme