At the end of 2016, MiCRO launched an index-based natural catastrophe microinsurance product in Guatemala. MICRO is working with Aseguradora Rural and Banrural to launch pilots which will grow into commercial product lines. At the end of 2017, MiCRO will launch an index-insurance based natural catastrophe microinsurance product in El Salvador with Seguros Futuro and the Banco de Fomento Agropecuario.
Over the next two years, MiCRO will be following a pattern of rapid innovation and iterative product designs. The goal is to create a product which minimizes basis-risk, the risk that payout of an index-insurance product does not reflect the losses suffered by the policyholder. The initial product will have/be:
- Differing levels of payouts, from minor to catastrophic
- Distributed by local aggregators like microfinance institutions, cooperatives, and other organizations that reach the target market
- Future versions of the product will introduce loss adjustment, cash payouts, and other features.
The company is focused on developing the best product for natural hazards in the world—products that consumers want to buy every year.