Howden International Insurance Group has acquired microinsurance specialist MiCRO, which provides standard natural catastrophe insurance to underserved populations in Latin America. The move, according to Howden, underscores its commitment to leveraging insurance as a “force for good,” particularly in emerging markets.

MiCRO was founded by Mercy Corps and Fonkoze following the 2010 earthquake in Haiti, and currently operates in Guatemala, El Salvador, Colombia and Mexico. As a frontier insurer, MiCRO provides rapid financial relief to smallholder farmers and small enterprises through payments based on the severity of the disaster rather than traditional claims assessments.

As of the end of last year, MiCRO had more than 180,000 active policyholders.

Howden said the deal, the financial terms of which were not disclosed, is in line with the group’s goal of empowering vulnerable communities to become more resilient and adapt to the threats of climate change. At the same time, MiCRO will now have the opportunity to grow by leveraging Howden’s international reach, global market access, and strong data and analytics capabilities.

Despite Mercy Corps’ exit as part of the deal, MiCRO will continue to seek collaborative opportunities with the organization to support its mission of alleviating suffering, poverty and oppression, and building safe, productive and just societies.

“MiCRO has made significant progress in recent years, and as we embark on further expansion, Howden has emerged as a natural growth partner,” confirmed MiCRO CEO Carlos Bolsterelli (pictured). “I have been extremely impressed by their long-term commitment to disadvantaged groups, and they are without a doubt a company whose actions speak louder than words.

“In the face of the global challenge posed by climate change, it is essential that we empower marginalized communities with access to the right insurance coverage to deal with tomorrow’s vicissitudes.”

Charlie Langdale, Head of Climate Risk and Resilience at Howden, noted: “At Howden, we firmly believe that the insurance market holds great potential to enhance resilience among underinsured communities, enabling them to adapt to the future climate landscape, and microinsurance is one of the The tools needed to achieve this.

“MiCRO’s data platform and exceptional experience, both in benchmark insurance and also in creating broader access to insurance, will help us expand this important capability to those most at risk.”

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