When a renewal comes up for consideration for the first catastrophe bond transaction to be sponsored by Jamaica, there is already some discussion regarding the need for a larger cover to be in place, or for it to be expanded to cover additional Caribbean island nations, a World Bank Managing Director has said.
Speaking with the Jamaica Gleaner newspaper, Dr Mari Pangestu, the World Bank’s Managing Director of Development Policy and Partnerships, explained that the country’s catastrophe bond has been hailed as a success and particularly noted as an innovative step.
As a reminder, Jamaica’s first catastrophe bond, the IBRD CAR 130 transaction, was placed in July 2021 and saw the Caribbean island nation securing $185 million of disaster insurance protection from the capital markets with the assistance of the World Bank and the IBRD Capital-At-Risk notes program.
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