A recent report from Global Parametrics has acknowledged that catastrophe bonds can be part of the solution to risk financing for humanitarian organisations. The firm suggests that for humanitarian organisations requiring substantial capacity, multi-year cat bonds, as well as parametric products may secure greater limits and provide longer-term protection than other financial instruments, but only as part of a broader strategy.
The parametric climate risk insurance provider, part of CelsiusPro Group, recently published a whitepaper that explores the use of catastrophe bonds in a humanitarian context.
Within the paper, the firm outlines how it thinks humanitarian organisations should look at a broad range of alternative financing structures, with a particular focus on parametrics, but including potentially other products such as catastrophe bonds.
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