Thursday, June 16, 2011

ARTICLE - FONKOZE INITIATES CATASTROPHE RECOVERY PRODUCT

MICROFINANCE INSTITUTION FONKOZE INITIATES CATASTROPHE RECOVERTY PRODUCT IN HAITI
(Microfinace Focus) -

Following disastrous rain and flooding in Haiti last week, microfinance institution Fonkoze rolled out its catastrophe recovery product, ‘Kore W’ on Wednesday, to help clients and their families recover from the calamity. Fonkoze staff has begun visiting clients and assessing ground situation in flood hit regions.

Under this coverage, affected clients receive a cash payout of 5,000 Haitian Gourdes ($125) to meet emergency needs like food, water, and temporary shelter. These clients will also receive a reimbursement of the balance of their existing loan, and a new loan when they are ready to restart their business.

Fonkoze’s client have been purchasing this coverage with their loans since January this year which included detailed training on the types of occurrences which would trigger a payout, including losses from rain, wind and earthquakes.

Fonkoze has seven branch offices in the south-west region of the country which received the heaviest rains last week. Haiti’s National civil protection authorities reported at least 28 deaths.

Since a series of devastating hurricanes struck Haiti in the fall of 2008, Fonkoze has developed natural disaster coverage at affordable prices. Fonkoze has founded ‘Microinsurance Catastrophe Risk Organisation’ (MiCRO), a risk transfer vehicle launched in March 2011 to manage it own risks. Global reinsurer Swiss Re is also a founding partner of MiCRO.

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