As the 2026 Atlantic hurricane season approaches, the government of Cayman is considering expanding its hurricane protection by turning to the insurance-linked securities (ILS) market to potentially issue its own catastrophe bond, while simultaneously expanding its parametric insurance coverage too, Cayman Compass reports.
The Cayman Islands are considered to be highly prone to hurricanes. The islands are very low-lying, which makes them extremely vulnerable to storm surges, where the ocean is pushed inland by high winds.
Cayman’s Minister for Finance and Economic Development Rolston Anglin told the Cayman Compass that his ministry has decided to increase the islands’ insurance coverage for natural catastrophes.
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