Global reinsurance specialist Guy Carpenter Co., LLC has been awarded a grant by the Microinsurance Innovation Facility to develop a reinsurance facility for microinsurance and microfinance company operations (MFIs).
MIF, a partnership between the International Labour Organization and the Bill Melinda Gates Foundation, promotes insurance coverage in developing countries for low-income people who otherwise would not have access to commercial coverage.
With this grant, Guy Carpenter will create the infrastructure for a multi-line microreinsurance risk-pooling facility to provide risk transfer solutions for MFIs. This will enable them to access the global commercial risk and reinsurance marketplace and to obtain cost-effective, efficient coverage that would be difficult for them to obtain independently on the open market.
The facility is designed to help MFIs improve their institutional stability, increase product capacity and penetration, stimulate product innovation, and access invaluable commercial market expertise. The goal of the facility is to structure efficient reinsurance products that are both affordable for microinsurers and profitable for reinsurers.
“This groundbreaking facility will help identify, develop, and deliver reinsurance solutions that will impact millions of individuals in need of insurance protections and help them stabilize their income, protect their assets, and manage their risk,” added Andrew Marcell, CEO of Guy Carpenter’s Americas operations.
Guy Carpenter expects its products and services to reach an estimated 8 million microborrowers/microinsureds within five years, by securing the solvency of their microfinancial services providers.
Source: Guy Carpenter
Guy Carpenter Microinsurance Solutions www.guycarp.com/gcmicroinsurance
Guy Carpenter intellectual capital website
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