Howden has acquired MiCRO, a microinsurance specialist that designs and implements parametric insurance coverage for underserved populations in Latin America against natural catastrophes.
MiCRO was founded by Mercy Corps and Fonkoze in the aftermath of the 2010 Haiti Earthquake and has since grown to operate in Guatemala, El Salvador, Colombia and Mexico.
According to Howden, the acquisition underlines its strategy to invest in new solutions that “use insurance as a force for good”, particularly in emerging insurance markets where demand is growing due to the increase in volatile weather events driven by climate change.
Howden added that MiCRO will now be able to expand its parametric solutions through the firm’s international presence, deep access to global markets, and data and analytics capability.
Charlie Langdale, Chair, Climate Risk and Resilience, Howden, commented, “At Howden, we firmly believe that the insurance market holds significant potential for fostering resilience among underinsured communities, enabling them to adapt to the future climate landscape, and microinsurance is one of the tools to achieve this.
“MiCRO’s proprietary data platform and exceptional expertise, both in parametric insurance but also in creating wider access to insurance will help us scale this important capability for those most at risk.”
Carlos Boelsterli, Chief Executive Officer, MiCRO, added, “MiCRO has achieved remarkable progress in recent years, and as we embark on further expansion, Howden emerged as a natural growth partner.
“I have been extremely impressed with their long-term commitment to the underserved and they are undoubtedly a business whose actions speak louder than words.
“In the face of the global challenge posed by climate change, it is essential that we empower marginalised communities with access to the correct insurance cover to cope with the volatility of tomorrow.”
