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African Risk Capacity, a specialized agency of the African Union, has created the first catastrophe insurance pool for African countries that will help offer parametric policies to these countries, Artemis.bm reports.
The agency has set up ARC Insurance Co. Ltd., a specialist hybrid mutual insurer initially domiciled in Bermuda, which will issue the policies. ARC has started off by issuing policies with a value of around $135 million. It has also secured reinsurance capacity worth $55 million, Artemis.bm reported. The United Kingdom and Germany, founding members of the mutual, contributed the initial capital.
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