ARTICLE - SWISS RE - MICROINSURANCE

SWISS RE HONORED FOR MICROINSURANCE WORK
(PropertyCasualty360.com) - By Anya Khalamayzer

NEW YORK — Microinsurance is not an act of charity but a business model that can pay insurers real dividends while helping the impoverished climb back from natural catastrophes, says the chairman of America for Swiss Re.

Speaking last night during a benefit gala to honor the reinsurance carrier Swiss Re for its involvement in the microinsurance program run by Fonkoze in Haiti, Walter Bell, chairman of Swiss Re America Holding Corp., representing Swiss Re, says that the economic culture in Haiti posed a challenge to a company trained in writing policies within a complex business environment.

“We view microinsurance not just as a charitable piece of our philanthropy; we view it as part of a core business strategy,” he says.

He emphasizes that Swiss Re’s work in Haiti developed a new business model to provide property and casualty insurance in developing countries.

The strategic relationship formed between Swiss Re, with its resources, and Fonkoze, which had built the appropriate distribution channels, is a “global-private partnership team” which can link with governments, non-government organizations and microfinance institutions.

“We know that when we help vulnerable communities, we fight hunger, build resistance to climate change, reduce the cost of natural disasters, and get people back on their feet as soon as possible,” states Bell, adding that Fonkoze helped entrepreneurs remain solvent after rebuilding their businesses.

Microinsurance and microfinance are programs aimed at providing loans and insurance programs to people in developing countries at a cost that is affordable to them.

Fonkoze, adult education and microfinance provider in Haiti reaches 275,000 families, honored Swiss Re at its 2012 Global Partner of the Year gala for financing and piloting an innovative catastrophe bond product in the disaster-ridden country.

Also honored was Yeardley Smith, American actress known for her voice-over work as Lisa Simpson. She was the recipient of the 2012 Solidarity Award for her work and charitable contributions to the organization.