Keep pulling the thread on World Bank.
The World Bank has a goal to issue an additional $3.5 billion worth of catastrophe bonds over the next four years.
Investing in catastrophe bonds was the most successful hedge fund strategy in 2023, delivering returns of 20%.
Catastrophe bond investments generated returns of 17% in 2024.
The government of Jamaica implemented a three-year catastrophe bond in 2021 and has subsequently renegotiated a new bond that is currently in effect.
Hurricanes in the Caribbean region are observed to be getting stronger, more intense, and are developing more rapidly.
Jamaica's catastrophe bond did not provide a payout following Hurricane Beryl because the storm's intensity failed to meet the specific trigger criteria defined in the bond's policy.
The issuance of catastrophe bonds reached a record level in 2024.
The catastrophe bond for Jamaica was structured by dividing the country into 19 distinct cells, each with a unique payout trigger threshold based on hurricane speed.
The risk modeling for Jamaica's catastrophe bond was conducted by the company Verisk.
Verisk has developed catastrophe risk models that cover more than 110 countries.
The Inter-American Development Bank is advocating for the adoption of climate-resilient disaster clauses in debt agreements.
Since 2009, the World Bank has issued approximately 15 catastrophe bonds related to weather events.