Re/insurers form innovative micro insurance incubator
A micro insurance consortium has been launched by a group of re/insurers and brokers to deliver risk protection to the underserved in developing countries.
The consortium consists of American International Group (AIG), Aspen Insurance, Catlin Group, Guy Carpenter, Marsh & McLennan, Hamilton Insurance, Transatlantic Reinsurance Company, XL Group and Zurich Insurance.
The group has also launched a micro insurance venture incubator (MVI) on Bermuda committed to launching ten micro insurance ventures over the next ten years that will deliver solutions to address the risk management needs of the underserved.
Serving as an innovation incubator, the MVI will support the launch and operations of a portfolio of micro insurance ventures worldwide. These ventures will provide the business services necessary to achieve scale and profitability in the market including: unique distribution methods, local partnerships, product development and impact services such as measuring/monitoring social impact.
It is currently evaluating opportunities in Latin America, Africa and emerging Asia, with the initial venture to be launched in 2015.
Joan Lamm-Tennant, global chief economist and risk strategist, Guy Carpenter, has been appointed to serve as the MVI’s chief executive officer (CEO) and will be based in New York.
Alexander Moczarski, president and CEO of Guy Carpenter and chairman of Marsh & McLennan Companies International, said: “The ability to manage and finance risk is important to the development of a society. As an industry, we have a responsibility to be socially relevant. The gap between economic and insured losses continues to be an impediment to the emergence of societies. The establishment of the MVI demonstrates our commitment to advance the relevance of insurance in society by addressing the risk needs of the underserved.”
Michael McGavick, CEO of XL Group, added: “In many regions of the world, opportunities to better oneself and one’s community come more slowly and with devastating risks because the resilience created by the insurance sector is not available. This must change, and I am terribly proud that this consortium have come together to do something about it.”
