The Microinsurance Catastrophe Risk Organisation (MiCRO), a reinsurance company established in Barbados, has launched ‘Produce Seguro’, a new index based insurance product in El Salvador that protects small businesses and low-income families against natural disasters.
“Anyone who may be affected by a catastrophic weather or earthquake event will be able to get the insurance protection they need from a reliable source,” said Steve Mitchell, Chairman of the Board for MiCRO.
Designed by MiCRO and provided through local partners Banco de Fomento Agropecuario and Seguros Futuro, the policy is triggered automatically by predetermined events that are verified by objective data sources, including NASA satellites.
Agriculture and the small business sector is critical to many South America economies and is exceedingly susceptible to weather-related events. This new product will cover business interruption losses from excessive rainfall, severe drought and earthquakes.
The stronger the event, the greater the payout to the beneficiaries will be. Policyholders will also receive disaster risk reduction training through national coordinating bodies.
Mitchell, added, “We are working closely with financial institutions and insurers in the region to develop commercially sustainable products that are appropriate and affordable for farmers and small businesses,” said Steve Mitchell, Chairman of the Board for MiCRO.”
Through its local partners, MiCRO already piloted a similar product in Guatemala last year, which was recently launched nationwide, and plans to expand to three additional countries in the next two years, the first one being Colombia.
Carlos Boelsterli, Chief Executive Officer (CEO) for MiCRO, commented, “After having launched a similar product in Guatemala last year, this product launch in El Salvador shows that MiCRO’s solution, the first one offering protection against natural disasters to those who need it most, is replicable, a critical factor to scale up and be able to offer this innovative product sustainably.”