The African and Asian Resilience in Disaster Insurance Scheme (ARDIS) is thought to be the world’s largest non-governmental climate insurance programme, and covers 15 of VisionFund's microfinance institutions.
The ARDIS programme
VisionFund’s innovative programme ARDIS was launched in 2018, and working in partnership with the German Development Bank’s InsuResilience Investment Fund and Global Parametrics, is the world’s largest non-governmental climate-insurance programme.
VisionFund is using the ARDIS programme to provide the necessary tools for recovery lending following major natural catastrophes, and in doing so, provide outcomes like those traditional insurance would provide.
The programme offers microfinance solutions to about 10 million people across 15 countries and to new and existing clients who are or will be affected by climate-related disasters.
The '4Cs' of ARDIS
Our partner IIF supplies VisionFund, through ARDIS, a revolving line of credit available to its member MFIs, which contains a climate index threshold. If a disaster triggers this index, the credit is offered at pre-disaster interest rates. The amount is matched to the severity of the event, which also matches the impact on the ground. As the indexed nature of the cover means no assessment of loss is needed, new loans can be made to help families start recovering straight away.
The '4Cs' of ARDIS
Our partner, Natural Disaster Fund, provides the ARDIS scheme with a derivative that pays out in the event of a natural disaster, triggered by a similar climate index to credit. This can be used to support the operational costs of making recovery loans and as capital to support the making of these loans without exceeding regulatory limits.
The '4Cs' of ARDIS
Our partner, Global Parametrics, builds the indexes for the credit and capital products. Data used for this is adapted for ARDIS and its member MFIs to make lending decisions around the potential impact of drought, flood and windstorm on the agricultural season. These decisions drive farming activity for a more productive season and greater benefit for the community.
The '4Cs' of ARDIS
Recovery lending can seem counterintuitive – lending to a client who is already in debt after a disaster would appear at first to be high risk – but the ARDIS model seeks to inject loans into the market, rather that withhold them. MFIs are encouraged to make loans after smaller local or even individual disasters, from their own balance sheets. In this way, MFIs ensure that they plan for recovery lending programmes from their own balance sheets. Recovery lending can act as insurance for all our clients to assist them, their families and communities to start recovering their livelihoods straight away.
Reports and Case Studies
Webinar: Learning From Past Crises to inform our response for COVID-19
Host: Christian Economic Development (CED) Network
World Vision and VisionFund International share learning from past crises and how that experience informs strategy during the COVID-19 pandemic.
Typhoon Haiyan - ADB Report
The following report sets out the experience, analysis and conclusions of VisionFund International and their Philippine microfinance operation Community Economic Ventures Incorporated (CEVI). This analysis follows the economic recovery of over 4,000 client households badly affected by typhoon Haiyan over the 18 months following the disaster and seeks to derive recommendations for future financial disaster risk management solutions. The work was funded by the Integrated Disaster Risk Management Fund of the Asian Development Bank (ADB) with financial support from the Government of Canada.
Typhoon Haiyan - Video
This film documents how recovery loans from VisionFund helped rebuild lives after Typhoon Haiyan.
Recovery Loans Help After a Fire
Life can be cruel at times. This is a story of a woman entrepreneur, who invested all her energy and funds to boost up her family's livelihood by engaging in a cosmetic business in the Lilongwe market. She lost everything during a fire that razed the Lilongwe market on 23rd September 2016.
El Niño Report
Summary report on the VisionFund “Recovery Lending in Fragile African States affected by El Niño” Project: November 2015 to June 2017
How Microcredit Can Help Poor Countries After Natural Disasters - The Economist
On January 18th, VisionFund, a microlending charity, and Global Parametrics, a venture that crunches climate and seismic data, launched what they billed as the “world’s largest non-governmental climate-insurance programme”. The scheme will offer microfinance to about 4m people across six countries in Asia and Africa affected by climate-change-related calamities.
Climate Insurance Scheme Targets Women Farmers in Africa, Asia - Reuters
The African and Asian Resilience in Disaster Insurance Scheme (ARDIS) is being led by VisionFund International, the microfinance arm of development charity World Vision, and Global Parametrics, a new venture backed by the British and German governments.
Finance Responds to Climate Change: How 'Recovery Lending' Can Help Victims of Weather-related Disasters - Next Billion
VisionFund International pioneered this type of lending as a response to Typhoon Haiyan in the Philippines – one of the strongest storms ever recorded – supporting more than 5,000 families in their recovery efforts. Another of our recent recovery lending projects supported 14,500 families in rural areas of Kenya, Malawi and Zambia, who were dealing with the severe effects of droughts and floods caused by 2015/2016’s very strong El Niño. Funds helped clients to avoid extreme poverty by quickly re-establishing their farming businesses and diversifying their income to help bridge the gap between planting seasons.