The African Union's insurance arm will increase its disaster cover to $1.5 billion by 2020 from $179 million currently following one of the continent's worst droughts in decades, a senior executive has said. African Risk Capacity now plans to expand insurance coverage against drought, floods and cyclones to more than 150 million Africans in disaster risk in 30 countries. It plans to introduce a tropical cyclone insurance later this year and flood insurance in 2017. "The idea is to make sure that when trouble comes, the resources are available on time," ARC Director-General Mohamed Beavogui told Reuters. Niger, Senegal, Gambia, Mali, Malawi, Mauritania and Kenya have already bought insurance from ARC while Zimbabwe, Burkina Faso and Madagascar are expected to buy drought cover in the next month, Beavogui said.

Source: The Star May 28, 2016 03:33 UTC