African Risk Capacity Limited (ARC Ltd), the specialist insurance company providing climate and disaster risk insurance to African countries, sought a reinsurance broker and risk advisor to make more efficient use of reinsurance and third-party capital.
Our global Agriculture Reinsurance team offers specialist expertise, customised technology and local know-how to help insurers better understand their exposures and manage underwriting volatility.
Collaborative resources and agriculture-specific tools for a broad range of risks
(Re)insurance offers the agriculture sector important financial stability in the face of weather and environmental threats. Public and private sector insurers bring the stability that producers and the industry need, but insurers can incur heavy financial losses, making appropriate reinsurance cover essential.
Our Agriculture team provides customised and fully integrated risk management solutions to further strengthen agriculture resilience for a broad range of increasing climate and disaster risks. Through analytics and advanced financial risk management, we help clients understand, anticipate and manage the most disruptive weather and financial events.
We collaborate with fellow global colleagues in more than 80 offices worldwide to ensure clients have access to the most relevant information, tools and insights required to navigate challenges and opportunities. Our agriculture insurance and reinsurance professionals deliver customised solutions for the insurance ecosystem: professionals of the food and agriculture industry, academia and governments.
We develop agriculture reinsurance solutions that meet your needs
Different countries, risks, objectives, sectors and populations require different approaches to building financial resilience, as well as requiring unique (re)insurance risk management solutions.
Our Agriculture team delivers analytics, advisory and risk transfer transactions to help address catastrophe and systemic threats, constantly adapting to clients’ business needs and evolving risk environments. We support all areas related to agriculture (re)insurance with our offerings:
- Portfolio assessment. We evaluate the unique characteristics of each client’s portfolio and quantify exposure to natural perils using our proprietary agriculture analytics platform. Our agriculture modelling comprises a full range of in-house and licensed models.
- Insurance and reinsurance program design. In addition to structuring tailored reinsurance solutions, our services also include:
- Support for risk management (policy) design
- Insurance product design
- Financial modelling
- Parametric product structuring, modelling and reinsurance placement
- Advisory toward public-private agri-insurance schemes
- Stable and sustainable capacity. Trading annually with more than 80 unique counterparties, our understanding of, access to, and relationships with capacity providers help us secure competitive terms for clients.
- Dynamic reinsurance optimisation. With CropCast, our proprietary, fully customisable, actuarial benchmark pricing tool, we're able to apply selected frequency and severity models to stress test virtually an unlimited number of reinsurance programs, in real time, against each client’s unique risk management requirements. The tool is web-based, which means we can compare the benefits of different reinsurance structures from anywhere, at any time.
Case study: The transfer of climate and food security risks in Africa
Gallagher Re brought together a wide range of experts to tackle key pain points of the reinsurance programme. Our efforts combined strong focus on execution of the transaction, as well as practical analytics and advisory services, including aspects such as basis risk assessment, portfolio diversification, cost of capital minimisation and risk financing strategy and optimisation.
Through a holistic approach to risk financing, in-depth market intelligence, highly collaborative broking strategy and strong focus on the environmental, social and governance (ESG) nature of the programme, we were able to offer a comprehensive and highly competitive solution to our client. The result? Helping reduce their reinsurance spending and unlocking new growth and resilience pathways.
Agriculture Reinsurance Summary
- Clients benefit from local agricultural expertise as well as global collaboration through the servicing platform
- CropCast anchors Gallagher Re’s proprietary agriculture analytics platform
- Actively trading with 80+ counterparties on agriculture business
- Advisory and product development expertise, including parametric product structuring, modelling and reinsurance placement