Microinsurance proves to be a benefit in Haiti
The U.S. was not the only country to suffer from the onslaught of Hurricane Sandy in 2012. The powerful storm also tore its way through Haiti, leaving a path of destruction in its wake. Many people lost their homes and livelihood in the wake of the disaster, but it also brought a relatively unknown type of insurance program into the limelight as well. Hurricane Sandy brought attention to the Microinsurance Catastrophe Risk Organization (MiCRO), which has been a major boon for some people in the wake of Hurricane Sandy.
MiCRO provides stability to Hurricane Sandy victims
MiCRO offers microinsurance coverage to clients of Fonkoze, Haiti’s leading microfinance institution. This coverage is designed to protect the loans that Fonkoze provides by ensuring that clients are protected from catastrophic losses due to natural disasters. Hurricane Sandy is one of the instances in which consumers were able to benefit from the microinsurance program. MiCRO was founded in 2011 and all Fonkoze clients are covered through the program at no additional cost.
All Fonkoze clients covered through microinsurance program
The program has been a major benefit for those that saw their homes destroyed by last year’s powerful hurricane. Through the microinsurance program, some Fonkoze clients saw their debt wiped clean, with new loans being instituted by Fonkoze through a new credit account. In many cases, these loans features a significantly lower interest rate than a client’s previous loan. The microinsurance program also provided these clients with funds to help them recover from the natural disaster.
Program receives international support
MiCRO has received praise from Haiti consumers and has also attracted international attention because of the effectiveness of its disaster management capabilities. The International Finance Corporation, which is part of the World Bank, has announced that it is issuing $1.7 million in funding for the program. The program will also be receiving technical assistance from the International Finance Corporation to help bolster its capabilities and expand its reach to a wider consumer base.