CDB to Provide Additional Funding for Haiti Micro Insurance Catastrophe Risk Organisation
The Caribbean Development Bank (CDB) is to allocate an additional amount equivalent to USD1 million to its Micro Insurance Catastrophe Risk Organisation (Haiti) Fund. CDB established the multi-donor trust fund after approval from the Board of Directors in July 2011, with an initial contribution of GBP955,00 from the Government of the United Kingdom of Great Britain and Northern Ireland. This fund supports the operations of a micro insurance catastrophe risk facility (MiCRO), which provides parametric insurance to protect microcredit borrowers in Haiti against losses resulting from natural disasters. Approximately 35% of the Trust Fund has been disbursed to date, and over 8,500 clients have benefitted from insurance payouts. The focus of the Trust Fund is fostering broad-based economic growth. Provision of the additional resources to the Trust Fund will contribute to a more sustainable micro-finance sector in Haiti though the support of MiCRO. In particular, the Trust Fund will assist with catalysing the flow of private capital by removing one of the constraints to private investment, and will target vulnerabilities that affect the poor, or those at risk of becoming poor, resulting from events such as natural disasters.