The Inter-American Development Bank (IDB) and IDB Invest have unveiled a major expansion of disaster risk financial instruments designed to enhance the use of reinsurance and the capital markets for risk transfer across Latin America and the Caribbean.
Central to this initiative is a newly launched Regional Disaster-Risk Transfer Program that facilitates sovereign access to reinsurance and capital markets, addressing a critical gap for small and vulnerable economies with limited market penetration.
Led by the IDB, it will initially support Belize, Honduras, and Panama in transferring risks from hurricanes, floods, droughts, earthquakes, and wildfires. The initiative is expected to grow through regional risk-pooling arrangements, with Spain and France expressing interest in supporting the program.
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