Swiss Re Public Sector Solutions, the arm of the global reinsurer that works with governments, international institutions, and the broader public sector on risk transfer solutions, has suggested now is the time to invest more boldly in insurance-linked loans.
Swiss Re says insurance-linked loans, alongside parametric insurance, catastrophe bonds, and contingent credit lines, are an insurance innovation that can enhance sovereign disaster resilience by enabling countries not just to buy time but to truly transfer their risks.
According to Dr. Gerry Lemcke, Head of Technical Sales, and Maria Zou, Technical Sales Lead for Public Sector Solutions at Swiss Re, nations that depend on loans from multilateral institutions and donors to finance infrastructure and economic growth often find that debt repayment obligations that persist after a disaster can drain vital financial resources.
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