Bermuda Celebrated By African Risk Capacity
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- Press Release
Bermuda’s Risk Leadership Celebrated By African Risk Capacity
Hamilton, Bermuda, September 7, 2022 – The Bermuda Business Development Agency (BDA) was pleased to facilitate an important dialogue and award presentation between the board of directors of African Risk Capacity Limited (ARC Ltd.) and Bermuda’s Deputy Premier.
To recognise the formation of ARC Ltd. being formed in Bermuda ten years ago, ARC Ltd.’s board of directors travelled to Bermuda recently to hold its board meeting and presented an award to Bermuda’s Deputy Premier and Minister of Home Affairs, The Hon. Walter Roban JP, MP.
ARC Ltd. Chair, Abdoulie Janneh, commended Bermuda for its global risk leadership and continued support of ARC, an innovative public-private cooperation programme for the benefit of Africa. “ARC represents the nature of global cooperation required across all countries to help the international community achieve sustainable development goals and address the impacts of climate-related and other natural disasters on vulnerable populations,” Mr Janneh said. “The ARC Ltd. board held strategic meetings in Bermuda during the week and provided awards to recognise the innovative and continuous support of key financial sector service providers, including Marsh, Appleby, Butterfield, Deloitte and PwC.”
The Deputy Premier and Minister of Home Affairs, the Hon. Walter Roban, JP, MP, said, “On behalf of the government and people of Bermuda, it was a privilege to converse with and receive an award of appreciation from ARC Ltd. Bermuda has long helped to close the global climate risk protection gap and is a global leader in property catastrophe (re)insurance. It is extremely gratifying to see that we are also punching above our weight class when it comes to helping Africa. The Bermuda government welcomes the opportunity to play a role in supporting the African continent, and its many countries work to advance opportunities in the global environment. Bermuda is not only open for business, but we are also open for Africa.”
BDA CEO, David Hart said, “The BDA was pleased to facilitate these important meetings between the ARC Ltd. board and senior Bermuda officials. On May 24, 2022, the BDA was fortunate that ARC Ltd. CEO, Lesley Ndlovu, was able to speak on the ‘CEOs, Climate and Capacity’ panel at the Bermuda Climate Summit presented by the BDA. The BDA looks forward to continued engagements with this vital international organisation, hopefully at our second annual Bermuda Risk Summit being held from March 6-8, 2023.”
Over the 10 years since its formation, ARC Ltd. has provided insurance coverage to the value of over US $900 million, protecting over 90 million vulnerable people and paying out about US $124 million in insurance claims to participating African countries following droughts and tropical cyclone disasters. ARC Ltd.’s parametric insurance programmes have directly helped over 6 million beneficiaries, preventing loss of lives and livelihoods.
In July 2012, in response to the increasing climate change crisis, the heads of state and governments of the African Union, took a decision to establish ARC in Bermuda to help African countries strengthen their preparedness to manage weather-related disasters. In November 2012, the ARC Agency was created as a specialised agency of the African Union. In 2013, at the request of the ARC Agency’s member states, ARCLtd., a unique hybrid mutual insurance facility was created in Bermuda.
In his statement to Bermuda’s House of Assembly in May 2014, former Minister of Education and Economic Development, Dr. Grant Gibbons said ARC was Africa’s first catastrophe insurance pool, that it was established in Bermuda after considerable due diligence by international law firms and agencies, and that it was designed to help reduce African governments’ reliance on external emergency aid. It was also noted that Bermuda’s (re)insurance market was at forefront when it came to being able to form a fund to facilitate financial stability in instances where other insurance options were not available.