In a move reflecting a commitment to positive social change and bolstering resilience in underinsured communities, Howden, the international insurance intermediary group, has announced the acquisition of MiCRO, a microinsurance specialist. MiCRO’s expertise lies in designing and implementing parametric insurance coverage for underserved populations in Latin America, particularly against the backdrop of natural catastrophes. This strategic acquisition underscores Howden’s dedication to leveraging insurance as a force for good, especially in emerging insurance markets grappling with the surge in volatile weather events.
MiCRO’s Origin and Expansion
MiCRO’s journey began after the 2010 Haiti Earthquake when Mercy Corps and Fonkoze founded it. Since then, it has expanded its operations to four countries in Latin America – Guatemala, El Salvador, Colombia, and Mexico. MiCRO’s solutions provide crucial financial safety nets for smallholder farmers and micro-enterprises operating on a parametric insurance model. With a swift payout mechanism tied to the severity of disasters rather than traditional loss adjustment processes, MiCRO enables its clients to recover from the financial burdens imposed by natural calamities quickly.
Focus on Inclusivity and Impact
One of the critical aspects of MiCRO’s operations is its focus on inclusivity. With over 180,000 active policyholders by the end of 2023, a significant portion of whom are women and smallholder farmers, MiCRO’s impact on marginalised communities is substantial. This aligns perfectly with Howden’s vision of empowering vulnerable populations to build resilience in the face of climate change-induced challenges.
Leadership Perspectives on the Acquisition
Carlos Boelsterli, CEO of MiCRO, expressed optimism about the acquisition, highlighting Howden’s long-term commitment to the underserved. He emphasised the importance of empowering marginalised communities with access to appropriate insurance coverages to navigate the uncertainties of tomorrow’s climate landscape.
Charlie Langdale, Chair of Climate Risk and Resilience at Howden, echoed these sentiments, underlining the insurance market’s significant potential in fostering resilience among underinsured communities. Langdale stressed the importance of microinsurance as a tool to achieve this goal, citing MiCRO’s proprietary data platform and expertise in parametric insurance as invaluable assets in scaling this capability for those most at risk.
Conclusion
MiCRO’s acquisition by Howden marks a pivotal moment in building resilience in underinsured communities. Combining expertise, resources, and a shared commitment to social impact, Howden and MiCRO are poised to make significant strides in protecting vulnerable populations against climate-related disasters. As collaboration opportunities continue to be explored, the stage is set for innovative solutions that empower communities and pave the way for a more resilient future.
