Howden has announced its acquisition of 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 four countries – Guatemala, El Salvador, Colombia and Mexico. Based on a parametric insurance model, its solutions cover financial losses affecting smallholder farmers and micro enterprises.

With swift payouts determined by the level of the disaster’s severity, rather than a traditional loss adjustment, it is designed to help insureds recover quickly from additional costs and burdens of natural catastrophes.

Carlos Boelsterli, chief executive officer, MiCRO said: “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.”

Charlie Langdale, chair, Climate Risk and Resilience, Howden, added: “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.”

MiCRO had over 180,000 active policyholders at the end of 2023.


Image: A coffee bean plant

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