Accessible Insurance Solutions for All Haitians
Inter-American Development Bank (IDB)
Haitians of all economic levels are interested in buying insurance products, increasingly so in the aftermath of the devastating earthquake of 2010. One traditional insurance company whose reputation was enhanced after honoring an unprecedented number of claims stemming from that earthquake has a strategic growth plan to expand services and products to the most vulnerable Haitians. Haitian-owned Alternative Insurance Company (AIC) is making insurance more accessible with a plan to expand affordable funeral and credit life insurance in the lower-income market and to create new micro- insurance products. Yet AIC's financial reserves were depleted after the earthquake and despite strong growth the company needed to close an equity gap. The Inter-American Bank's Opportunities for the Majority Initiative (OMJ) is a critical catalyst in the recapitalization of this market leader. OMJ is lending AIC $2 million in the form of subordinated debt as part of an overall $8 million recapitalization plan and has played a critical role in mobilizing investors from the US, Canada, Mexico and Haiti to invest in the private, Haitian-owned company.