The International Finance Corporation (IFC), a member of the US-based World Bank Group, recently announced plans to donate USD 1.96 million to the Microinsurance Catastrophe Risk Organization (MiCRO), a Barbados-based company that was established in 2011. Of this amount, USD 260,000 is from the Global Index Insurance Facility (GIIF), an IFC program aimed at increasing access to weather and natural disaster insurance in poor countries, for technical assistance. The remaining USD 1.7 million is described as “performance-based,” suggesting that some or all of the funds may be contingent on MiCRO reaching unspecified goals.
MiCRO was created by Fonkoze, a Haitian microfinance institution, and Mercy Corps, a US-based nonprofit organization, after a major earthquake in January 2010 caused widespread financial losses in Haiti. MiCRO provides hybrid insurance products that pay out when a weather event or natural disaster exceeds a predetermined level of severity; the payout is increased if the extent of actual losses is greater than the base coverage amount. All of Fonkoze’s loan clients pay for insurance from MiCRO.
Financial Information on MiCRO is not available.
By Nicole Boyd, Research Associate
About Microinsurance Catastrophe Risk Organization (MiCRO)
MiCRO was formed in March 2011 by Fonkoze, a Haitian microfinance institution, and Mercy Corps, a US-based nonprofit organization, with support from the UK’s Department for International Development (DFID) and Swiss Re, a financial services group based in Zurich, Switzerland. MiCRO offers a hybrid insurance product with a payout partially based on a set of weather-related triggers (wind speed, rainfall and earthquakes), and part based on the extent of actual losses. All Fonkoze microentrepreneurs pay for insurance coverage through a partially subsidized premium at the beginning of each loan cycle. As of 2011, MiCRO has reportedly provided Fonkoze with USD 1.64 million in payouts provided to approximately 6,800 Haitian women. Financial information on MiCRO is not available.
About Fonkoze
Fonkoze was established in Haiti in 1994 with the mission of “building the economic foundations for democracy in Haiti by providing the rural poor with the tools they need to lift themselves out of poverty.” As of December 2011, Fonkoze reported total assets of HTG 451 million (USD 11 million), a gross loan portfolio of HTG 68.2 million (USD 1.7 million), approximately 60,100 borrowers and 273,000 depositors with total deposits of HTG 138 million (USD 3.4 million). The institution had 899 employees in 46 branches as of the same date.
About International Finance Corporation (IFC)
A member of the US-based World Bank Group, the International Finance Corporation (IFC) offers loans, equity investments, advisory services and technical assistance to private companies with the intent of alleviating poverty and promoting open and competitive markets in developing countries. As of 2012, IFC reported total assets of USD 75.7 billion.
Sources and Additional Resources:
IFC. “IFC Awards $1.96 Million from the EU funded Global Index Insurance Facility to Insure Haitian Entrepreneurs against Natural Disasters,” http://www.ifc.org/IFCExt/pressroom/IFCPressRoom.nsf/0/DC7BE78E30D6386185257B02005B627F?OpenDocument
Caribbean Journal. January 30, 2013, “IFC to Help Provide Disaster Insurance for Micro-Entrepreneurs in Haiti,” http://www.caribjournal.com/2013/01/30/ifc-to-help-provide-disaster-insurance-for-micro-entrepreneurs-in-haiti/
MicroCapital. November 26, 2012, “MICROCAPITAL BRIEF: Fonkoze, Microinsurance Catastrophe Risk Organisation (MiCRO), Make Insurance Payout to Haitian Women After Hurricane Sandy,”
https://www.microcapital.org/microcapital-brief-fonkoze-microinsurance-catastrophe-risk-organisation-micro-make-insurance-payout-to-haitian-women-after-hurricane-sandy/
MicroCapital. June 21, 2012, “MICROCAPITAL BRIEF: Microfinance Institution (MFI) Fonkoze Initiates Claims Process for Clients Affected by Heavy Rains in Haiti,” https://www.microcapital.org/microcapital-brief-microfinance-institution-mfi-fonkoze-initiates-claims-process-for-clients-affected-by-heavy-rains-in-haiti/
MicroCapital Universe Profile: Microinsurance Catastrophe Risk Organization (MiCRO) https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Microinsurance+Catastrophe+Risk+Organisation
MicroCapital Universe Profile: Fonkoze https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Fonkoze
MicroCapital Universe Profile: International Finance Corporation (IFC) https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=International+Finance+Corporation+%28IFC%29
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