It's been long time in the making: the Microinsurance Catastrophe Insurance Organisation (MiCRO) was created in 2010, and started operations with a natural catastrophe cover for microentrepreneurs in Haiti. The lessons learnt over 4 years were translated in the Central America Disaster Microinsurance Expansion (the CADME Programme) which started in 2014 with the goal to protect a minimum of 250,000 families in Central America by 2019 against the impacts of severe weather.
We are very proud to announce that our close partnership with MiCRO has resulted in "Esfuerzo Seguro", the first index protection offering business interruption cover to rural populations in Guatemala for losses caused by severe drought, excess rain and earthquake. More specifically, the product is targeted to support financially vulnerable individuals engaged in small farming or entrepreneurial activities. Esfuerzo Seguro is distributed by insurer Aseguradora Rural, bundled with loans provided by bank Banrural.
It's been a long 2-years road since the initial demand and feasibility studies, which gave us the key components for the to-be product and possible price, to educating the regulator and informing the many technical exchanges for the product to be finally authorized. Then came the financial education and communications campaign, with a kick-off event in Huehuetenango in November 2016 for the clients of Banrural.
Because risk mitigation also needs prevention, the cover is complemented with a Disaster Risk Reduction component where the delivery of a 72-hour Emergency Kit with specific training on disaster risk preparedness is at the core. This kit comes in the shape of a backpack!
In addition, weather information will be shared via mobile phones with the support of CONRED (Guatemalan National Coordinator for Disaster Reduction) and mobile services provider Tigo.
The product was launched in mid-November as a pilot aiming to cover 5,000 Banrural clients in the areas of Huehuetenango and Chiquimula. The pilot will allow for testing and adjustment of operational and sales aspects, followed by a scale-up on the national level aiming to reach approximately 160,000 clients.
Following the successful launch in Guatemala, MiCRO and Swiss Re are working with partners to replicate the product in El Salvador targeted to early 2017.
See MiCRO's press release here
(Pictures: Jorge Barrientos, MiCRO)
Category: Climate/natural disasters: Climate change, Disaster risk, Drought, Earthquakes, Floods/storms, Resilience