we receive e we publish the following press release issued by Howden.
howden, a global insurance broker also present in Italy, has acquired MiCRO, specialist in micro insurance and in particular in parametric insurance coverage against natural disasters for disadvantaged populations in Latin America. The transaction confirms Howden's strategy to invest in new solutions that use insurance as a "force for good", particularly in emerging insurance markets, where demand is growing due to the increase in adverse weather events due to instability of the climate.
MiCRO was founded in the aftermath of the 2010 Haiti earthquake. It has since grown to operate in four countries: Guatemala, El Salvador, Colombia and Mexico. Based on a parametric insurance model, its solutions cover financial losses affecting small agricultural owners and micro-businesses. With prompt payments determined by the severity level of the disaster, rather than traditional loss compensation, they help customers recover quickly from the additional costs and burdens of natural disasters. At the end of 2023 MiCRO counted beyond 180.000 active insured, a significant percentage of whom are women and small farmers.
The acquisition reflects Howden's commitment to using the “strength” of insurance to enable vulnerable populations to become more resilient and adapt to the dangers of climate change. Thanks to Howden's international presence, data, analytics and access to global markets, MiCRO will now be able to expand the range and reach of its parametric solutions. Supporting the ambition to alleviate suffering, poverty and oppression by helping people build safe, productive and just communities.
Charlie Langdale, President Climate Risk and Resilience at Howden, said: “At Howden we strongly believe that the insurance market has significant potential to promote resilience among under-insured communities, enabling them to adapt to the future climate landscape, and micro-insurance it is one of the tools to achieve this goal. MiCRO's proprietary data platform and exceptional expertise, not only in parametric insurance but also in creating the conditions for broader access to insurance, will help us expand this opportunity for those most at risk."
Carlos Boelsterli, CEO of MiCRO, said: “MiCRO has made significant progress in recent years and, as we move towards further expansion, Howden was the natural partner for growth. I was extremely impressed by the long-term commitment to the underserved. This is undoubtedly a Group whose actions speak louder than words. Faced with the global challenge of climate change, it is essential to give marginalized communities access to the right insurance coverage to face the instability of tomorrow.”
Federico Casini, CEO of Howden in Italy commented: “Droughts, floods and all kinds of natural disasters are unfortunately increasingly frequent. We need to look beyond the traditional insurance offer which does not always meet all needs. Parametric policies are excellent tools that supplement any performance or capacity gaps.”
The Howden Group
Howden is a insurance group world leader whose core is employee ownership. Founded in 1994, offers insurance brokerage, reinsurance and underwriting services and solutions to clients ranging from individuals to the largest multinationals. The Group operates in 55 countries around the world, employing 17.000 people and managing $35 billion in premiums.
In Italy the company was born in April 2021 and has had very rapid growth also thanks to the acquisition of important national brokers. To date it represents the third national broker with over 800 people, a presence in 24 cities with 26 offices and a pro-forma turnover of 113 million euros.
