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Puerto Rico gets $282m parametric cover. Says cat bond “opened door” to capital market

The Government of Puerto Rico’s Autoridad de Asesoría Financiera y Agencia Fiscal (Fiscal Agency and Financial Advisory Authority) has secured $282 million of parametric disaster insurance cover, with the recent $85 million Puerto Rico Parametric Re Ltd. (Series 2024-1) catastrophe bond seen as a key component that opens the door to the capital markets.

Puerto Rico has been forward-thinking in its approach to insurance, having had a parametric disaster insurance arrangement in-force for a number of years.

In 2023, the parametric cover was traditionally insured and amounted to $220 million in coverage.

This year, with the help of its first catastrophe bond, Puerto Rico has increased its protection to $282 million under the parametric disaster insurance arrangement, with $85 million being from its first catastrophe bond.

FULL ORIGINAL PUBLICATION HERE

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