Index Insurance Market Profile: Haiti
Summary — This profile documents Haiti's index insurance market through the MiCRO program, which provides catastrophe insurance to micro-enterprises through microfinance institutions. The program paid out $8.9 million in 2012/13 to help thousands of women-owned businesses recover from natural disasters.
Key Findings
- The $8.9 million payout in 2012/13 helped thousands of women-owned micro-enterprises recover from natural disasters.
- Market participation remained stable with over 60,000 clients maintained from 2012-2014.
- Total insurance portfolio reached $7.97 million in sums insured.
- Program aims to reach 70,000 micro-enterprises by December 2016 with $20.5 million in projected contracts.
- GIIF provides up to 50% premium subsidies for three years to achieve market sustainability.
Full Description
Haiti faces significant natural disaster risks including earthquakes, hurricanes, and flash floods, making it one of the world's most disaster-prone countries. The MiCRO index insurance program was launched in 2011 to provide catastrophe coverage for micro-enterprises through microfinance institutions, particularly Fonkoze Financial Services.
The program covers floods, hurricanes, and earthquakes using natural catastrophe and weather index products. It achieved significant impact in 2012/13 with an $8.9 million payout that helped thousands of women-owned micro-enterprises repair damages, replace inventory, and reopen businesses. The insurance costs 5% of the value of insured inputs and uses TRMM satellite data for calculations.
Market development has shown steady participation with 67,365 clients in 2012, 63,969 in 2013, and 60,142 as of June 2014. The total insurance portfolio reached $7.97 million in sums insured. The program involves Alternative Insurance Company as the local insurer, with Swiss Re and MiCRO as international reinsurers.
With GIIF technical assistance and grant funds covering up to 50% of premiums for three years, the program aims to expand to additional MFI distributors and reach approximately 70,000 micro-enterprises by December 2016, with projected active insurance contracts valued at $20.5 million. The regulatory environment operates under a 1981 law giving the Ministry of Economy and Finance supervisory authority, with IBRD working on new insurance laws.