Work is underway to develop a catastrophe bond for the Caribbean region with the support of the World Bank, with four countries currently engaged and as many as four others thought likely to join the effort.
The initiative hopes to have a multi-country or regional Caribbean catastrophe bond ready for market by the time Jamaica’s landmark cat bond is due for maturity, at the end of 2023.
Jamaica’s first catastrophe bond, the IBRD CAR 130 transaction, came to market in July 2021 and saw the Caribbean island nation securing $185 million of disaster insurance protection from the capital markets to protect against hurricane and tropical storm losses, with the assistance of the World Bank and its IBRD Capital-At-Risk notes program.
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