The African Risk Capacity is an index-based weather insurance pool established by the African Union to strengthen disaster risk management (DRM) capacity among African Union countries. ARC aims to offer competitive pricing for risk insurance products through a pooled insurance model, and works at the national level to build the capacities of governments to anticipate, plan, and respond to disaster risk. Ultimately, ARC aims to build the resilience of vulnerable households to disasters.
OPM was commissioned by the UK Department for International Development to undertake a 10-year independent evaluation of ARC between 2015 and 2024. The evaluation will provide lessons for the management of ARC, test its effectiveness and provide accountability for the UK taxpayer. It will, more generally, provide a valuable contribution to the global evidence base on disaster risk financing and risk finance. The first formative evaluation report has now been published on OPM’s website. This will be followed by a second formative evaluation in 2019 and then an impact evaluation phase from 2020 to 2024.