Reinsurance, risk transfer and enterprise risk management are vital to the short- and long-term viability of microinsurance and microfinance company operations (collectively, "MFIs"). Most MFIs lack sufficient access to meaningful risk transfer solutions. This lack of access hampers market massification and product diversification. It also threatens the financial solvency of existing and potential new MFIs, as well as their millions of existing and potential low-income clients.
Guy Carpenter is working actively to create an enabling infrastructure within the commercial marketplace to support MFIs' risk transfer and the expansion and improvement of multiline microinsurance products. Guy Carpenter's efforts will enable MFIs to obtain cost-effective and efficient risk transfer solutions, which would be otherwise difficult for them to obtain independently on the open market. We will also act as a dedicated advocate for our MFI clients, providing them with a knowledgeable and accessible portal to the worldwide commercial risk and reinsurance marketplace and with ready access to the many critical benefits of risk transfer. Tailored solutions devised in tandem with Guy Carpenter will help MFIs address current needs and attain future goals, improve institutional stability, increase product capacity, enhance product penetration and stimulate product innovation. Guy Carpenter will also serve for MFIs as a source of and conduit to invaluable commercial market expertise.
From an overall market perspective, an active microreinsurance trade will promote macro- and micro-level innovation, increase awareness of microinsurance amongst (re)insurance practitioners worldwide, and improve overall microfinance service penetration and quality by increasing the available capacity for, and the stability of, existing and new products.