ARC and Klapton Re team up on climate reinsurance

ARC Ltd and Klapton Reinsurance Limited (Klapton Re) have signed a Memorandum of Understanding (MoU) in Lusaka, Zambia, for a new partnership that adds to the growing momentum across the continent to strengthen protection against climate risks

The collaboration brings together a development insurer with expertise in disaster risk financing and a private reinsurer with a strong footprint in African markets — two complementary players joining efforts to broaden access to practical, locally-adapted insurance solutions for vulnerable communities.

“This partnership is about complementing each other’s strengths to drive real change,” said Lesley Ndlovu, CEO of ARC Ltd.

“ARC brings expertise in designing climate insurance solutions tailored to African needs, while Klapton Re brings deep market knowledge and access to communities on the ground. Together, we can bring climate risk insurance to scale and ensure no one is left behind.”

The initiative comes at a time when the effects of climate change are being felt more widely and severely across Africa.

By pooling technical know-how, regional networks and local implementation capacity, the two sides aim to expand the reach of climate insurance in ways that are responsive to both immediate recovery needs and long-term resilience goals.

This agreement lays the foundation for a continent-wide collaboration to bring affordable and accessible climate insurance to people who need it most — especially small-scale farmers and families vulnerable to droughts, floods and other natural disasters.

By combining ARC Ltd’s deep expertise in data-driven insurance solutions with Klapton Re’s strong local presence and client networks, the two organisations are set to scale up protection for African lives and livelihoods.

“At Klapton Re, we see this collaboration as a unique opportunity to combine innovation with tailor-made reinsurance capacity,” said Kudzai Bingepinge, CEO of Klapton Re.

“By partnering with ARC Ltd, we’re enhancing our ability to deliver relevant and impactful insurance solutions, starting in Zambia and expanding across the continent. It’s about making climate protection real and reliable for the people who need it most.”

Under the MoU, ARC Ltd and Klapton Re will work together on several fronts to help African countries better manage climate risks before disasters strike.

They will co-develop and roll out new insurance products tailored to the needs of farmers and low-income families, enabling them to recover more quickly from climate-related losses.

The first programme is set to launch in Zambia in November 2025, focusing on protecting rangeland areas vulnerable to drought.

In addition, the two organisations will support local insurance companies by providing technical expertise in risk assessments and product development, both before and after weather events.

They also plan to deliver training for brokers, agents, and other key actors to strengthen the overall insurance ecosystem.