MICROCAPITAL BRIEF: MiCRO, Fonkoze of Haiti to Make Insurance Payout to Women Microentrepreneurs in Wake of Tropical Storm Isaac

Microinsurance Catastrophe Risk Organisation (MiCRO), a reinsurance company based in Barbados, is due to make a payout of an undetermined amount to Fonkoze, a Haitian microfinance institution, to help female microentrepreneurs recover from Tropical Storm Isaac, which struck the country in August. Fonkoze is to pay the local-currency equivalent of USD 125 to microentrepreneurs who lost their homes or inventories due to the storm. All Fonkoze borrowers must buy subsidized insurance on each loan they accept. In addition to the payout, MiCRO’s Kore W program allows businesswomen to cancel their outstanding loan balances and take out a new loan to re-capitalize their businesses.

The total amount of the payout is being calculated based on a combination of measurements of the severity of the storm as well as the extent of actual losses. In 2011, MiCRO provided Fonkoze with USD 1.64 million in payouts that benefitted approximately 6,800 Haitian women. MiCRO was founded in 2011 by Fonkoze and US-based nonprofit Mercy Corps.

By Mihaela Grindeanu, Research Associate

About MiCRO: MiCRO was formed in March 2011 by Fonkoze and Mercy Corps, US-based nonprofit organization, with support from the UK’s Department for International Development (DFID) and Swiss Re, a reinsurer and 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 the loan cycle. In 2011, MiCRO has provided Fonkoze with USD 1.64 million in payouts provided to nearly 6,800 Haitian women.

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.” Fonkoze is comprised of three institutions: Fonkoze, Fonkoze Financial Services (FFS) and Fonkoze USA. Fonkoze is a nonprofit microfinance institution that opens and builds new branches. FFS is a commercial MFI that expands the branches established by Fonkoze. Fonkoze USA channels financial and technical support to its Haitian partners. As of 2010, Fonkoze reported total assets of HTG 1.35 billion (USD 33.9 million), a gross loan portfolio of HTG 462 million (USD 11.6 million), approximately 50,500 borrowers and 234,000 depositors.

Sources and Additional Resources:

Fonkoze Press Release: “MiCRO and Fonkoze insurance payout will help Haitians rebuild businesses after Tropical Storm Isaac”, http://www.fonkoze.org/innews/pressrelease/339-micro-and-fonkoze-insurance-payout-will-help-haitians-rebuild-businesses-after-tropical-storm-isaac.html

MicroCapital Story, February 14, 2012: “MICROCAPITAL BRIEF: Haitian Microfinance Institution Fonkoze Attributes 20% Growth to Reputation Earned After 2010 Earthquake”, https://www.microcapital.org/microcapital-brief-haitian-microfinance-institution-fonkoze-attributes-20-growth-to-reputation-earned-after-2010-earthquake/

MicroCapital Story, 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: Fonkoze, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Fonkoze

MicroCapital Universe Profile: MiCRO, https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Microinsurance+Catastrophe+Risk+Organisation

Browse the MicroCapital Universe and add your entry to the wiki at https://www.microcapital.org/microfinanceuniverse/

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