A huge protection gap to fill! The number of uninsured people worldwide is estimated to be at least 4 billion. Approximately 93% of the assets in the developing world are not insured. The vulnerable individuals and small and micro-entrepreneurs often live and work in conditions that leave them particularly vulnerable to natural disasters. These natural disasters are more prominent nowadays as a consequence of climate change. Few have financial reserves to recover from disasters: a micro-entrepreneur who sells goods at a roadside stand can lose her home or entire inventory during a natural disaster. The need is great, and so is the opportunity. It is estimated that this is a $40 billion untapped market.
MiCRO creatively designs and implements risk management solutions that are tailor-made to the needs of its local partners and end clients. The objective of MiCRO’s solutions is to provide holistic risk management tools to the “target market” against natural disasters.
MiCRO’s solutions have two components: A risk transfer mechanism designed depending on conditions and needs of each intervention, and a programme that aims to add value to end consumers by strengthening their resilient, productive and by improving their livelihood conditions (the Value Added Program - VAP)
MiCRO designs risk transfer solutions that help families and micro-entrepreneurs to recover from natural catastrophes minimizing the need to de-capitalize or liquidate valuable assets. The solutions benefit the target market directly (microinsurance) or indirectly, either through protection acquired by entities offering key services to the target market (Meso) or through risk sharing solutions (pooling).
The development of socially impactful risk management solutions that make positive improvements in economic behavior, resiliency, and usage of insurance
Commercial sustainability following the pilot period where, over time, the entire value chain realizes an economic incentive to continue the product offering and scale
A pro-active culture of preparing for and responding to natural catastrophes through risk reduction and adaptation, especially in the context of climate change