How Jamaica took out an insurance policy
$150M US ‘catastrophe bond’ issued last year headed to full payout, will provide Jamaica immediate help.Funds could get to Jamaica in a matter of days. The country also has multiple eggs in its disaster risk basket — including insurance policies to cover extreme rainfall and tropical storms through a regional pool that provides disaster insurance to Caribbean countries. Additionally, it can draw on lines of credit with the World Bank and the Inter-American Development Bank.
"Jamaica's strategy is, in my perspective, one of the most comprehensive of any country globally at the minute," said Conor Meenan, a risk financing adviser at the U.K.-based Centre for Disaster Protection. Jamaica’s $150-million US catastrophe bond was issued in 2024 with the help of the World Bank. The country funded the bond itself, while investors, mostly investment firms in North America and Europe, bought it. The bond matures in 2027, covering four hurricane seasons.
In total, Jamaica's Finance Ministry says it has about $820 million US available in financing to draw from in the days and weeks right after a disaster. That won’t cover all of the likely billions of dollars in damages needed, but the insurance-related financing will flow to Jamaica much faster and help quickly restore the most essential services like roads, health care and telecommunications.