A group of global insurance companies and brokers took advantage of the World Economic Forum meeting in Davos to announce that they have established a micro insurance consortium and micro insurance venture incubator (MVI).
Among the companies taking part in the consortium are: American International Group, Inc., Aspen Insurance Holdings Limited, Catlin Group Limited LLC, Guy Carpenter & Company, LLC together with Marsh & McLennan Companies, Inc., Hamilton Insurance Group, Ltd., Transatlantic Reinsurance Company, X.L. Group, plc, and Zurich Insurance Group.
The bulletin said the “MVI has committed to launching ten micro insurance ventures over the next ten years that will deliver solutions to address the risk management needs of the underserved.
Daniel S. Glaser, President & CEO of Marsh & McLennan, Robert S. Miller, Non-Executive Chairman of the Board of American International Group, Michael Kerner, CEO General Insurance at Zurich Insurance Group and Alexander S. Moczarski, President & CEO of Guy Carpenter & Company and Chairman of Marsh & McLennan International made the joint announcement.
“The MVI is a Bermuda-based entity formed to create markets that deliver risk protection to the underserved in developing countries,” said the announcement. It will “innovate technology-enabled platforms, achieve sustainability through adequate levels of profitability and advance the role of insurance in society.
“The MVI is currently evaluating opportunities in Latin America, Africa and emerging Asia, with the initial venture to be launched in 2015. Joan Lamm-Tennant, Global Chief Economist and Risk Strategist, Guy Carpenter, has been appointed to serve as the MVI’s CEO and will be based in New York.
“The MVI’s strategy and operational model stem from a shared vision of the importance of micro insurance in emerging markets and a collaborative approach to innovation that benefits the marketplace and the industry. Serving as an innovation incubator, the MVI will support the launch and operations of a portfolio of micro insurance ventures worldwide. These ventures will provide the business services necessary to achieve scale and profitability in the market including: unique distribution methods, local partnerships, product development and impact services such as measuring/monitoring social impact.”
The executives of the companies that have founded the MVI also made the following comments:
Alexander Moczarski: “The ability to manage and finance risk is important to the development of a society. As an industry, we have a responsibility to be socially relevant. The gap between economic and insured losses continues to be an impediment to the emergence of societies. The establishment of the MVI demonstrates our commitment to advance the relevance of insurance in society by addressing the risk needs of the underserved.”
Daniel S. Glaser: “Increasingly, the growth of our industry is tied to innovation and the positive impact we make on society. The MVI applies our collective expertise and intellectual capital to help millions of people around the world. On behalf of our 56,000 colleagues, Marsh & McLennan is proud to be a founding partner of MVI.”
XL Group CEO Michael S. McGavick: “In many regions of the world, opportunities to better oneself and one’s community come more slowly and with devastating risks because the resilience created by the insurance sector is not available. This must change, and I am terribly proud that this consortium have come together to do something about it.”
Michael Kerner:”Our shared expectation is that by enabling product, distribution and operational innovation we will help create the efficiencies and knowledge necessary to make micro-insurance a vibrant sustainable market. When successful, it will help bring the benefits of modern risk management to millions of first-time insurance buyers.”
AIG Consumer Insurance CEO Kevin Hogan: “We have invested in a number of microinsurance initiatives in various countries and are eager to expand our reach through the promising work of this consortium. Microinsurance is not only a viable business, but one that presents a unique opportunity to serve individuals and small businesses who do not typically have access to our world class products and services. Partnering with our industry peers allows us to leverage our global reach, better mitigate risks, successfully reach more individuals and make an even more meaningful impact on communities and people around the world.”
Mario P. Vitale, CEO, Aspen Insurance and President Aspen U.S. Insurance: “With a structure designed to serve as an innovation incubator, the MVI will attract and engage young talent. Both Aspen and the millennial generation highly value innovation and creative approaches to solving problems, and this consortium will clearly resonate with that generation. This is a really important endeavor which I fully support and we look forward to contributing to its success.”
Catlin Group COO Paul Jardine: “We at Catlin are excited to participate in the MVI, which brings together a broad spectrum of companies of all shapes and sizes within the insurance industry. I believe that the MVI will not only benefit potential clients in emerging markets, but also will provide the MVI’s participants with essential knowledge about markets which are currently under-served by our industry.”
Michael C. Sapnar, President and CEO, Transatlantic Reinsurance Company: “This venture is about empowering local communities. By working together, we will be able to create a better solution than any one of us would be able to offer on our own. Each of us brings our own diverse experiences and skills: collectively we will be able to offer a more resilient, more effective insurance protection to currently underserved communities worldwide.”
Brian Duperreault, CEO, Hamilton Insurance Group: “Innovative research and development enabled by the MVI will make affordable insurance products accessible to millions in the developing world. Greatly reducing the cost of distribution on a global scale through reverse innovation could be one the most enduring legacies of this project.”
Joan Lamm-Tennant, Global Chief Economist and Risk Strategist, Guy Carpenter and MVI CEO-elect: “Endeavors of this scope and ambition would not be possible without the support and vision of our founding leaders. Our differentiated strategy is to learn and respond to the risk needs of the underserved.
“By forging strategic alliances with entities that have direct and trusted relationships, we will understand the needs of the customer, and subsequently identify specific ventures and solutions accordingly. I am excited about this unique business model. It has been designed to allow for the long term focus needed to balance profitability with social impact. Collaborative ownership enables the MVI to access the vast and specialized knowledge and resources of founding firms to the benefit of the underserved.”
Source: MVI Consortium
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