Indicative Case Study: Governance and Organizational Design

The ARC deploys risk pooling and risk transfer, among other instruments, to enable members to plan, prepare, and respond to extreme weather events and natural disasters. To help ensure the ability of ARC members to mobilize emergency assistance, KPMG in Norway and KPMG in East Africa assessed the governance and operations structure of the ARC Agency and the ARC Insurance Company Ltd. A comparative analysis was made against the operations and institutional structures of similar organizations and recommendations were developed to strengthen ARC’s sovereign insurance products.

This review resulted in options for implementing a clear division of labor between the ARC Agency and ARC Insurance Company, improving the uptake of insurance products among member states, strengthening effectiveness in East African operations and alignment with the African Union’s climate change efforts. The results included revisions to the governance structure, research and development for new early warning and sovereign insurance products, as well as pathways to greater private sector collaboration.