[Microinsurancefocus] Hollard and MicroEnsure form World's first Virtual Cell Captive

Tue Nov 3 17:52:13 CET 2009

Dear Colleagues

We are pleased to announce that Hollard Insurance Company and MicroEnsure
today announce that we have entered into a partnership to launch a virtual
cell captive. This new underwriting vehicle will enable MicroEnsure and
Hollard to offer access to a range of life, health and weather products
globally. In many countries there are no insurance companies willing to
provide access to more complex insurance products such as health and weather
index; this new partnership will enable us to provide underwriting capacity
where it is currently unavailable.

The press release can be found below, but if you want to discuss this and
you happen to be in Senegal at the Munich Re conference then please feel
free to grab Jeremy Leach or myself.

Hollard and MicroEnsure Partner to Launch World's First Virtual Cell Captive

MicroEnsure and Hollard Insurance Group have announced a global partnership
to launch the world's first "virtual cell captive" in order to implement
affordable insurance solutions in developing markets.  

The virtual cell captive will utilise Hollard's balance sheet to underwrite
a range of health, life and weather index risk across Africa and Asia;
enabling products like health and weather index to be offered where
previously underwriting capacity was a major constraint on market
development. 

The partnership sees MicroEnsure, a world leading microinsurance
intermediary and Hollard, one of the leading insurance innovators in the
South African market with a growing international footprint, join forces to
research, develop and offer a range of insurance products, tailor-made for
people who would not ordinarily be able to afford insurance. 

"This venture is an exciting opportunity for Hollard.  Considering
MicroEnsure's expertise, vast experience, and broad network of operations,
we see this partnership making a positive difference in very low income and
poor people's lives," says Stef Theofanidis, Managing Director of Hollard
Insurance Partners. 

"Both MicroEnsure and Hollard share a common "win-win-win" philosophy on the
tripartite partnership with the customer.  Hollard will not only assist
MicroEnsure in the developing countries where Hollard is present, but will
also provide access to reinsurance expertise and facilities in other
jurisdictions.  We are both committed to taking insurance to as many people
as possible.  We hope to dramatically increase the availability of
affordable, high value microinsurance products to people who are becoming
economically active and self-sustaining.

"We believe that through our partnership we have an opportunity to empower
people economically.  It can be the catalyst that brings them into the main
stream and allows them to earn a living whilst assisting them to mitigate
economic risk," he says.

According to Richard Leftley, President and CEO of MicroEnsure, the
partnership represents the crossing of a key hurdle for the micro insurance
industry.  "The lack of willing underwriting capacity to take on health and
weather risk in Africa and Asia is no longer a barrier to being able to
provide the poor with high impact products and a world class level of
service.

"We have noted a lack of willing underwriting capacity especially for health
and weather index risk in many developing countries. By combining Hollard's
underwriting capacity, reinsurance and underwriting skills with
MicroEnsure's product knowledge, on-the-ground distribution network and
ability to reach the poor, the partnership will be able to offer a range of
products previously unavailable to the poor," said Leftley.

Jeremy Leach, Divisional Director of Personal Financial Services and head of
microinsurance at Hollard said "Having personally known Richard Leftley and
his team for a number of years, I am thrilled that we will be able to bring
together MicroEnsure's best of class intermediary skills and Hollard's
alternative distribution capabilities in order to transform access to
insurance for the low income market." 

According to Doubell Chamberlain of the Centre for Financial Regulation and
Inclusion (Cenfri), insurance in emerging markets is significantly
underdeveloped. In most of these developing countries, less than 10% of the
population has access to insurance and in many countries, is the figure
drops to less than 5%. "Retail insurance markets are often non-existent and
are based on products that have remained unchanged for decades."  

Hollard is a registered financial services provider.  The company is South
Africa's largest independent and privately owned insurance company and one
of the country's largest micro insurers. Hollard has been in operation for
29 years and holds both short-term and long-term licenses.  The Hollard
Insurance Group is the third largest short-term insurer in South Africa and
has operations and investments in Namibia, Mozambique, Botswana, Nigeria,
China, Australia, India, Pakistan and the United Kingdom.  Hollard's
international philosophy is one of Afro-globalisation using a strong South
African skill base, infrastructure and balance sheet to partner with
prominent local businesses in setting up focused insurance related
initiatives.  It underwrites of all classes of insurance in South Africa and
has been successful with both its partner and direct business models. For
more information about Hollard, please visit  <http://www.hollard.co.za>
www.hollard.co.za.

MicroEnsure is the world's first insurance intermediary dedicated to serving
poor people with an appropriate and affordable range of insurance products.
It is well positioned to create and offer scalable, simple and
understandable life, health, and crop insurance products in the developing
world. Through extensive market research and insurance expertise, products
are designed to be affordable to the poor and sustainable for distributors
and insurance companies. Established in 2005, MicroEnsure is a subsidiary of
Opportunity International and currently serves more than 3.5 million lives
in ten countries in Africa and Asia. For more information, visit
<http://www.microensure.com> www.microensure.com

For further information: Richard Leftley, MicroEnsure, +44 (0)7800 593 604 /
Jeremy Leach, Hollard, +27 (0) 83 382 3520

Richard Leftley

President & CEO

Telephone: +1 630 687 1950
Mobile: +44 (0)7800 593 604
Skype: richard.leftley
Email:  <mailto:richard.leftley at microensure.com>
richard.leftley at microensure.com
Web:  <http://www.microensure.com> www.microensure.com

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