Guy Carpenter Convenes Local Practitioners for Index-Based Catastrophe Micro(re)insurance Seminar in Mozambique
Guy Carpenter, in conjunction with Asia Risk Centre (ARC), a division of RMS, held a training seminar in Maputo, Mozambique on the development, design and application of index-based approaches to catastrophe micro(re)insurance in low-income countries. The event took place as part of the organizations’ joint project under International Finance Corporation’s Global Index-Insurance Facility (GIIF) initiative, of which Swiss Re is a strategic partner. The event occurred in March, 2012.
Guy Carpenter and ARC’s ongoing GIIF project covers the design and development of index-based catastrophe insurance products for low-income persons and the institutions serving them in Mozambique. The training took place in anticipation of a soft product launch in 2012, which will cover smallholder farmers against losses to selected crops as the result of drought or excess precipitation.
At the event, speakers from each of the involved organizations covered topics related to the development of sustainable index-based catastrophe risk transfer programs and the particulars of this process in the developing world. Presentations were included on the following topics:
- The importance to development of disaster risk financing from differing perspectives
- The data requirements for index-based risk modeling including options for sourcing and scrubbing
- Index-based risk modeling techniques specific to low-income markets Product design and underwriting considerations with an emphasis on agriculture
- The significance of basis risk to functional value-chain development and maintenance
- Micro-, meso- and macro-level implementation options
Over 50 representatives from the Mozambican insurance, regulatory and development sectors attended the proceedings, which included several innovative/informative case studies and working group sessions.