Insurance coverage in Africa is still, with the exception of South Africa, very low, particularly in retail markets. Commercial general insurance is the most mature segment, but even here the industry is only around 2% of the total global market. Progress is quickly being made in all segments, including at the sovereign level. African countries are pooling their resources to respond more efficiently to natural disasters with the African Risk Capacity (ARC), established in 2012 after flooding in East Africa left several countries devastated. ARC is a specialised agency of the African Union established to assist member states in tackling the impact of natural disasters on vulnerable people. It is split into two arms, ARC Agency, which deals with capacity building, and ARC Ltd, which deals with insurance. ARC transfers the burden of weather and other natural disaster risks away from governments, enabling them to build resilience and plan, prepare, and respond to extreme events.
SOURCE: AFRICA BUSINESS MAGAZINE