Guy Carpenter awarded grant for reinsurance facility

Guy Carpenter Company is developing a reinsurance facility for micro-insurance and microfinance company operations (MFIs) after being awarded a grant by the Microinsurance Innovation Facility (MIF). 
The MIF — a partnership between the International Labour Organization and the Bill & Melinda Gates Foundation — promotes insurance coverage in developing countries for low-income people who otherwise would not have access to commercial coverage.
Guy Carpenter will create the infrastructure for a multi-line, microreinsurance risk-pooling facility to provide risk transfer solutions for MFIs using the grant.
The facility would allow MFIs to access the global commercial risk and reinsurance marketplace and obtain cost-effective, efficient coverage that would be difficult for them to obtain independently on the open market, a Guy Carpenter release notes.
The facility is designed to help MFIs improve their institutional stability, increase product capacity and penetration, stimulate product innovation and access invaluable commercial market expertise.
The goal is to structure efficient reinsurance products that are affordable for microinsurers and profitable for reinsurers, the release notes.
“This groundbreaking facility will help identify, develop, and deliver reinsurance solutions that will impact millions of individuals in need of insurance protections and help them stabilize their income, protect their assets, and manage their risk,” Andrew Marcell, CEO of Guy Carpenter’s Americas operations, said.