Project Basics
Guy Carpenter, through its GC Micro Risk SolutionsSM (“GC Micro”) group, aims to create the infrastructure for an innovative multiline microreinsurance risk-pooling facility, which will enable a variety of microfinance institutions (“MFIs”) – including small localized operations – to obtain cost-effective and efficient risk transfer solutions that otherwise would be difficult for them to obtain independently. The facility will aim to structure efficient reinsurance products that are both affordable and effective for MFIs and profitable for reinsurers.
Tailored solutions devised in tandem with GC Micro will help MFIs address current needs and attain future goals, improve institutional stability, increase product capacity, enhance product penetration, and stimulate product innovation. Such solutions will provide MFIs with access to commercial market underwriting expertise and GC Micro’s growing suite of value-added reinsurance services, such as dynamic financial analysis capabilities, peer analysis capabilities, knowledge of developing industry best practices, etc.
Broadly, an active microreinsurance market will promote macro- and micro-level innovation and increase awareness of microinsurance among (re)insurance practitioners worldwide. It will also improve overall microfinance service penetration and quality by increasing the available capacity for – and the stability of – existing and new products.
