Central America & Caribbean Catastrophe Risk Insurance Project

closed

Closed

The objective of the Central America and Caribbean Catastrophe Risk Insurance Project for Latin America is to improve affordability of high quality sovereign catastrophe risk transfer associated with earthquakes and climate-related events for CCRIF Participating Countries. There are three components to the project, the first component being finance parametric earthquake risk insurance for Council of Ministers of Finance of Central America and the Dominican Republic (COSEFIN) Participating Countries. This component will finance the following activities (until donor contributions to part one of Recipient-Executed activities of the MDTF have been exhausted): (a) payment of Reinsurance Premia and/or Swap Premia to cover part of the earthquake risk of COSEFIN participating countries insured by the recipient; and, (b) payment to COSEFIN Participating Countries of Insurance Payouts not covered by the reinsurance in the event an earthquake occurs, and such occurrence constitutes an Insured Event. The second component is the finance parametric climate risk insurance for COSEFIN participating countries. Component two will enable the CCRIF to provide tropical cyclone (hazards related to wind speed and storm surge) and/or excess rainfall coverage to COSEFIN members as a measure to adapt to climate change. Finally, the third component is the finance parametric climate risk insurance for Caribbean Community (CARICOM) participating countries. Component three will enable the CCRIF to provide excess rainfall coverage to CARICOM member countries as a measure to better adapt to climate change.

FY17 - Financial Sector

World Bank Group

Project

Wind, Forest Products and Packaging, Government