Jamaica’s Prime Minister and Minster for Finance and Public Services both praised global investor support for the $200 million IBRD CAR Jamaica 2026 catastrophe bond, with the third cat bond a key pillar in the countries fiscal resilience and disaster risk financing, while also revealing they plan to expand parametric coverage under CCRIF.
The one-third upsized $200 million World Bank facilitated catastrophe bond will now occupy a key upper-layer of Jamaica’s layered risk transfer and disaster risk financing arrangements over the coming years.
Speaking at the launch of the National Risk Disaster Council yesterday, Prime Minister Dr Andrew Holness explained how the government is strengthening Jamaica’s resilience through expansion of its disaster risk financing arrangements in 2026.
Holness said that after the onslaught of hurricane Melissa which triggered the last catastrophe bond and other parametric insurance arrangements the “fiscal resilience” these instruments provide was demonstrated in the payouts that helped in recovering key services on the island.
“Government planned and put in place a catastrophe bond which yielded a payment and then we used the funds strategically for the recovery of critical public services, fiscal resilience. So preparedness is not only shelters, relief supplies and emergency services. A country must also have financial readiness,” the Prime Minister said.
He continued, “Jamaica’s ability to respond to shocks has improved because of fiscal discipline buffers, insurance arrangements, and disaster risk financing instruments. And I’m pleased to say that we floated now our third catastrophe bond successfully, which showed from the international community that there is an appetite for Jamaica and it was a great success that we were able to do that.”
Holness also revealed plans to expand Jamaica’s parametric risk transfer through coverage under the CCRIF facility as well.
He noted that the Minister of Finance has begun negotiations with CCRIF to expand the parametric coverage for Jamaica, to include the coastal product that is designed to protect the fishing industry and communities.
“So we are broadening the umbrella of protection through fiscal resilience,” the PM explained.
Fayval Williams, Minister of Finance and Public Service, further commented on the successful catastrophe bond in a statement yesterday.
Williams said, “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.”
She noted the support of international partners in the placement of the catastrophe bond, “Jamaica is incredibly grateful to the World Bank for its market guidance and placement of the catastrophe bond across a wide cross-section of global investors. Additionally, Jamaica says ‘Thank you’ to the Monetary Authority of Singapore, who will be supporting the transaction financially.”
While the catastrophe bond and parametric insurance Jamaica will have in-force in 2026 can often be looked upon as a relatively small amount of risk capital versus the massive economic impacts of another storm like Melissa, the rapid, responsive and internationally diversifying nature of the fiscal resources the disaster risk financing can deliver is extremely valuable.
Cat bonds and parametric insurance helped Jamaica recover quicker and should any storms impact the island again this year the country now has more protection in place, which can only help to ease the economic effects of any major hurricane.
You can read all about the new IBRD CAR Jamaica 2026 catastrophe bond and more than 1,000 other cat bond transactions in the extensive Artemis Deal Directory.
