Enhancing Financial Resilience to Natural Disasters and Climate Change

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The proposed project has two components that aim to fund (i) the transaction of premium costs for the placement of a Regional Caribbean CAT bond and (ii) the formulation and implementation of gender informed disaster risk finance and insurance strategies. CAT bonds provide a quick payout in the event of a predetermined event, so governments can attend to the initial disaster expenditures without diverting resources from other social and development purposes. They are not debt but risk transfer instruments, akin to parametric insurance, enhancing financial resilience against disasters and supporting sustainable growth. The payout is allocated to general budget or contingency funds, benefiting all the population in participant countries. Support the development of gender informed disaster risk finance strategies will help prioritize women and women-led households in emergency expenditures and help mitigate the differential gender effects of disasters.