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Jamaica secures us$200 million in hurricane insurance coverage through new world bank catastrophe bond
Kingston, Jamaica: Wednesday, May 27, 2026On Tuesday, May 26, 2026, the World Bank, through the International Bank for Reconstruction and Development (IBRD), rated Aaa/AAA, issued a catastrophe (cat) bond providing the Government of Jamaica (GOJ) with US$200 million in insurance coverage against hurricanes.The new bond replaces the previous catastrophe bond, which provided US$150 million in coverage and was fully paid out in 2025 following the impact of Hurricane Melissa on the island in October 2025.The 2026 cat bond attracted strong international investor interest, securing participation from twenty-five (25) global investors, up from fifteen (15) investors in the 2024 issuance.Issued under the IBRD’s “capital at risk” notes program, catastrophe bonds enable developing countries to transfer disaster-related risks to international capital markets. Under the arrangement, the World Bank issues the bond and enters into a risk transfer agreement with the Government of Jamaica
