ARC Ltd and Klapton Reinsurance Limited (Klapton Re) have signed a Memorandum of Understanding (MoU) in Lusaka, Zambia, announcing a new partnership that adds to the growing momentum across the continent to strengthen protection against climate risks. This 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.
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, ARC Ltd and Klapton Re 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 that will 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.
“This partnership is about complementing each other’s strengths to drive real change,”said Lesley Ndlovu, Chief Executive Officer 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.”
“At Klapton Re, we see this collaboration as a unique opportunity to combine innovation with tailor made reinsurance capacity,”added Kudzai Bingepinge, Chief Executive Officer 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.”
A plan to build resilience
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 under this collaboration 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. Engaging with regulatory bodies will be a key part of the work, ensuring that all products meet national standards and are introduced responsibly. To broaden their impact and build trust, the partners will conduct joint awareness campaigns and roadshows across the continent. Finally, they aim to explore digital innovations—such as a mobile app that automates crop damage assessments—to make climate insurance more efficient, accurate, and transparent for everyone involved.
A timely response to a growing threat
With climate shocks becoming more frequent and severe, African countries face increasing economic losses and food insecurity. Yet access to financial protection remains low. Through this collaboration, ARC Ltd and Klapton Re are taking proactive steps to close that gap and build long-term resilience. This MoU is the first step toward delivering real solutions for real people — so that when disaster strikes, recovery can begin immediately.
