NU Online News Service, June 20, 2:33 p.m. EDT
Swiss Re says it has paid "a large amount" of claims on micro-insurance policies purchased in Haiti to cover losses from recent storms there.
The Switzerland-based insurer says the Microinsurance Catastrophe Risk Organization (MiCRO), a donor-capitalized insurance facility, released a large amount of parametric insurance proceeds (which means the trigger is not based on pure loss but event occurrence) by Swiss Re in Haiti.
Swiss Re says the release of the funds follows a major rainfall in the south of the country during early June, which resulted in widespread flooding, mudslides and loss of life.
The proceeds will be given to Fonkoze, a leading micro-finance institution in Haiti, which in turn will provide cash support to its clients impacted by these events.
MiCRO was developed by a syndicate of strategic stakeholders including Swiss Re, CaribRM, Guy Carpenter, Mercy Corps, Fonkoze and DFID.
Swiss Re says that in March 2011, the formation of MiCRO was announced with the long-term goal of helping Haiti's micro-entrepreneurs protect themselves against the economic aftermath of severe natural catastrophes.
Fonkoze made coverage available to its 50,000 clients starting early this year. The MiCRO initiative allows clients to pay for coverage at the outset of each new loan. Once damage to the home and business assets for each client has been established, Fonkoze will eliminate the value of that client's debt and pay a fixed sum of Haitian Gourdes 5,000 (approximately U.S. $125) for the rebuilding process. A new loan will also be made available as soon as each client is ready.
"As terrible as the flooding disaster has been for the citizens of Haiti, it has demonstrated that the MiCRO structure works and will, in the short term, help micro-entrepreneurs in the affected areas to rebuild more quickly," says Anne Hastings, CEO of Fonkoze, in a statement. "Ultimately, MiCRO's tools will offer Haiti a more steady foundation for long-term economic stability and development."
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.