The Inter-American Development Bank (IDB) has successfully arranged its first sovereign parametric catastrophe swap transaction, securing $20 million of hurricane risk transfer for Belize, underwritten by global reinsurance firm Swiss Re.
This first of its kind transaction to be facilitated by the Inter-American Development Bank (IDB) is seen as an important step in bringing more disaster risk transfer and financing to its member countries and one that can be repeated for other natural disaster exposed nations.
In executing this catastrophe swap for Belize, the IDB has helped the country secure an almost two year source of parametric hurricane protection.
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