We’re proud to have contributed flood risk modelling expertise to African Risk Capacity as it launches Africa’s first sovereign parametric flood insurance policy in the Republic of Madagascar.
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African Risk Capacity (ARC) has launched Africa’s first sovereign parametric flood insurance policy. The Republic of Madagascar is the first country on the continent to subscribe to this new coverage. The contract, which was officially signed in January 2026, provides access to timely funds that can strengthen national response efforts in the immediate aftermath of a major flood.
This new cover represents a significant step in enhancing disaster risk financing for African governments and forms part of ARC’s long-term work to build climate resilience across the continent.
JBA partnered with ARC on the design of the parametric flood insurance product, contributing specialist flood risk modelling to support a robust, defensible trigger mechanism tailored to African contexts.
By enabling rapid access to finance – with payouts designed to be made within ten days of a confirmed trigger – the product helps governments respond quickly and support the people and livelihoods most impacted by floods.
“This new flood product reflects the continued evolution of Africa-led climate risk management solutions. It demonstrates our collective determination to move from a reactive approach to one centred on anticipation, using innovative tools tailored to the realities of our continent”
Dr Jean Chrysostome Ngabitsinza, Director General of the African Risk Capacity Group.
“The floods that affected the capital at the beginning of January, leaving more than a thousand people affected, once again highlight the extent of Madagascar’s vulnerability to climate hazards. In this context, parametric insurance represents a strategic lever to strengthen our rapid response capacity, mobilize timely financing, and better protect the most exposed populations.”
Dr Ramiarison Herijantovo Aimé, Minister of Economy and Finance of the Republic of Madagascar.
The product builds on more than five years of collaborative development between ARC and JBA, offering governments a way to transfer flood risk aligned with their national disaster risk management priorities.
“After several years of dedicated research and investment, we are pleased to launch this parametric flood insurance solution, built on the most advanced flood risk model and tailored to the specific particularities of African countries. This is only the beginning: we will roll out this solution across our Member States and continue expanding our portfolio to address additional climate risks in line with their evolving needs”
David Maslo, CEO of ARC Ltd.
“We are pleased to support ARC in bringing this important solution to market. Flood risk is highly complex and rapidly evolving, and our work together focuses on providing governments with transparent, evidence-based tools that can underpin timely and effective response. Madagascar’s adoption of this new cover is an encouraging step in expanding access to pre-agreed financing across the region.”
Paul Maisey, Director, JBA Global Resilience.
ARC Ltd. (the insurance affiliate of the ARC Group) plans further roll out across Member States as countries look for tools to manage evolving climate risks. Since 2014, ARC Ltd. has issued more than 300 sovereign insurance policies for drought, tropical cyclones and epidemics, resulting in over US $250 million in payouts.
Read of official press release here.
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