African Union insurance arm to boost disaster cover to $1.5 bln

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 said on Thursday.

Drought has ravaged much of southern Africa this year and Malawi's government said on Wednesday half its population is in need of food aid due to the prolonged dry period.

African Risk Capacity (ARC) now plans to expand insurance coverage against drought, floods and cyclones to more than 150 million Africans in disaster risk in 30 countries.