Catastrophic risk index insurance product launched in
“This innovative product will for the first time offer insurance protection in
MiCRO’s pioneering product will cover business interruption losses from excessive rainfall, severe drought and earthquakes. MiCRO already submitted a related product for approval in
“We are working closely with microfinance institutions and insurers in
The catastrophic risk index insurance policy, designed by MiCRO and provided through local Guatemalan partners Banrural and Aseguradora Rural, is triggered automatically by predetermined events that are verified by objective data sources, including NASA satellites. 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, such as Guatemala’s CONRED.
Critical to many Central American economies, the agriculture and small business sector is exceedingly susceptible to weather-related events. Climate change is a threat multiplier for many such events, increasing both their intensity and frequency. Before this product, there were no index-based, catastrophic risk insurance policies specifically for low-income individuals in
By the end of 2019 MiCRO’s catastrophic risk index insurance products are expected to reach 250,000 people across