Global insurance and reinsurance broker Aon has completed a hurricane and earthquake parametric insurance program for the Government of Puerto Rico, designed to lower the region’s insurance obligation to the U.S. Federal Emergency Management Agency (FEMA).
This “historic” parametric program provides the island with diversified hurricane and earthquakes protection, and is the single largest government-sponsored parametric transaction for Puerto Rico.
Reducing the region’s insurance obligation to FEMA is a key feature of the arrangement, and this is actually the first parametric insurance mechanism used to lower FEMA’s Obtain & Maintain (O&M) requirement, according to Aon.
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