CelsiusPro is thrilled to announce a pivotal collaboration with Floodbase and African Risk Capacity Limited (ARC Ltd.) to introduce innovative parametric flood insurance programs for farmers in Mozambique and Malawi. This initiative represents a significant advancement in offering financial resilience to those most affected by climate change in Africa.
Addressing the Insurance Gap with Innovative Technology
In areas where farming is the backbone of livelihoods, such as Mozambique, where over 80% of the population depends on agriculture, the absence of insurance against agricultural risks has been a persistent issue. Traditional flood insurance models have not been economically feasible due to the complexities of accurately modeling flood risks and the high costs associated with claims management. The devastating impact of events like Cyclone Idai, which led to $700 million in economic losses, underscores the critical need for innovative insurance solutions.
The Role of Global Parametrics and ARC Ltd.
Global Parametrics, a member of the CelsiusPro Group, alongside ARC Ltd., will significantly contribute to underwriting, capacity building, and the deployment of risk capacity for these insurance programs. This partnership showcases a sustainable approach to risk transfer that leverages technology, local expertise, and innovative financing mechanisms to protect against climate-related disasters.
Building a Resilient Future for African Farmers
Mark Rueegg, CEO of the CelsiusPro Group, stressed the importance of parametric risk transfer in closing the protection gap. He highlighted Global Parametrics' efforts in enhancing climate resilience across 70 countries. The collaboration with Floodbase and ARC Ltd. is a powerful testament to the shared commitment to bolstering the resilience of communities in Malawi and Mozambique against the backdrop of increasing climate risks.
Learn more about our collaboration with with Floodbase and ARC Pty Ltd here.