Case study

Jamaica increases Climate-resilience through the First-ever Sovereign Catastrophe Bond for a Small Island in the Caribbean

The high exposure of Jamaica to natural and climate-related disasters is posing an increased risk to the country’s population as well as its macroeconomic and financial outlook. The Government of Jamaica is addressing this risk by implementing a disaster risk financing strategy that aims to improve the country’s financial resilience through prearranged financing instruments including a contingency fund, contingent credit and catastrophe insurance. Supported by the World Bank, GRiF and USAID, a catastrophe bond provides the Government of Jamaica with USD 185 million in storm protection for three years until December 2023. The country’s first-ever cat bond transaction complements the strategic financing instruments and reduces the country’s financing gap in a cost-efficient way.

Topic / Theme:

Climate & Disaster Risk Management

Solutions / Instruments:

Creation of DRF Strategy, Sovereign Risk Transfer


Latin America & Caribbean




N. Cooney, S. Rajput, S. Hagemann and J.A. Villalobos






Government of Jamaica, World Bank, AIR Worldwide, Swiss Re Capital Markets and Aon Securities LLC, Global Risk Financing Facility – financed by BMZ and FCDO, USAID