Gallagher Re and Africa Re seek to address African protection gap

Gallagher Re and Africa Re are pooling their resources, in a partnership it is claimed will strengthen the financial resilience of African countries against a broad range of climate, crisis and disaster risks.

Named ‘Accelerating action through scalable risk transfer schemes’, the initiative consists of a toolkit of innovative analytics, regulatory and policy advice.

Both parties say it brings together public and private sectors to deliver customised, at-scale financial resilience solutions across Africa.

The support will focus on existing resources and domestic capacity, complemented where most relevant with third-party capital. 

As such, solutions developed would include risk transfer solutions to financing emergency response costs in the aftermath of a crisis, national insurance schemes for agriculture and crop, as well as weather derivatives and parametric products for public infrastructure, energy or tourism sectors.

Regional drought conditions and the global political environment (Africa is heavily relying on wheat imports from Russia and Ukraine) require prompt action and at-scale implementation plans. In this context, both parties claim that the partnership between Africa Re and Gallagher Re’s Public Sector & Climate Resilience Solutions global practice is an important stepping-stone towards sustainable economic growth and better protected livelihoods on the continent.

Dr Corneille Karekezi, group MD & CEO of Africa Re, said: “Africa is already bearing the brunt of climate change – and the threat of global, interconnected shocks further jeopardises hard-won development gains and livelihoods on the continent.”

‘In line with our 2022-2025 strategy, this ambitious initiative aims to leverage private sector and governments’ expertise and capabilities for improved resilience and financial protection. It will also contribute to re-positioning Africa Re as the risk transformer of the African continent’s systemic risks.’

Antoine Bavandi, global head of Public Sector, Parametric & Climate Resilience Solutions at Gallagher Re, added: “We are thrilled to begin this journey with Africa Re and its partners. We will be putting to work our expertise in various domains to come up with the most practical and cost-efficient solutions to various risks, exposures and country contexts.”

Natalie Van de Coolwijk, regional director, Middle East & Africa at Gallagher Re, said: “Economic resilience is of critical importance to our continent, particularly in the wake of a rapidly changing risk landscape.  It is important that this project is designed and driven by Africans for Africans, hence why Africa Re is central to its success.’