Experience and lessons learned on pan-african approach to disaster risk transfer Federica Carfagna – Addis Ababa, 25th June 2019

Key lessons learned INSTITUTIONAL, GOVERNANCE AND POLICY ENGAGEMENT Member State ownership Greater education around disaster risk financing. Long term commitment and considerable investment Expectation management. Shared analysis and inclusive dialogue around risk. Member State ownership is essential in driving awareness, demand and political support for engagement around risk management and insurance. Ideally regional /continental insurance mechanisms like ARC should be integrated into national frameworks There is a need for greater education and awareness building around disaster risk financing and associated concepts. The implementation of a continental or regional risk financing facility such as ARC is a long term commitment and requires considerable investment in capacity building, development of analytical tools, education and awareness raising, commitment of risk capital etc. Insurance is not a silver bullet and there is a need for expectation management regarding the ARC mechanism. There is a need for shared analysis and inclusive dialogue around risk.

Key lessons learned OPERATIONS Quality of input data Continued R&D (new products, combination of indexes, etc) Regional institutions partnership ..More specific on speeding up the response Quality of input data Continued and active Rearch & Development on new products and tools to address the expressed needs of Member States combination of indexes, shadow models, . Strengthening of partnerships with African technical and academic regional institutions is a priority. More specific on speeding up the response, M&E, communication, diversification of activities

Key lessons learned RISK TRANSFER Need for premium payment support for ARC Member States. Fiscal constraints Payment Fatigue Political Instability Shifting priorities Basis risk management Risk layering approach Despite interest in ARC insurance products, countries face a number of challenges in mobilising premium and ensuring consistent participation in the insurance pool