Howden, a leading insurance broker, has announced the acquisition of MiCRO, a microinsurance specialist focused on providing parametric insurance coverage to underserved populations in Latin America against natural catastrophes.
This strategic move aims to enhance MiCRO’s capabilities by leveraging Howden’s international presence, global market access, and advanced data and analytics expertise, according to the Coverager.
Following the acquisition, MiCRO will benefit from Howden’s extensive resources and network to scale its parametric solutions, thereby extending insurance coverage to more vulnerable communities.
The collaboration also presents opportunities for MiCRO to explore synergies with Mercy Corps, which has exited as part of the deal.
Founded by Mercy Corps and Fonkoze in the aftermath of the 2010 Haiti Earthquake, operates across four countries in Latin America: Guatemala, El Salvador, Colombia, and Mexico. Utilising a parametric insurance model, its solutions offer financial protection to smallholder farmers and micro-enterprises affected by natural disasters.
With over 180,000 active policyholders by the end of 2023, MiCRO has demonstrated significant impact in addressing insurance gaps in the region.
Carlos Boelsterli, CEO of 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 of Climate Risk and Resilience at 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.”
The acquisition of MiCRO by Howden signifies a strategic alignment towards addressing insurance gaps and promoting resilience in underserved communities, particularly in the face of climate change.
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