Jamaica plans to renew CCRIF parametric coverage in 2026, but no mention of cat bond

The Government of Jamaica has announced its intention to renew its Caribbean Catastrophe Risk Insurance Facility (CCRIF-SPC) parametric risk transfer coverage in May 2026. However, there has been no confirmation regarding the potential for any renewal of its World Bank-facilitated catastrophe bond.

At the same time, the Government also revealed that it is planning to strengthen its suite of disaster risk financing instruments in order to help build structural resilience and mitigate potential damage from natural disasters across the country.

Minister of Finance and the Public Service, Hon. Fayval Williams, made the announcements during her opening speech at the 2026/27 Budget Debate in the House of Representatives earlier this week.

Shortly after major hurricane Melissa struck Jamaica, CCRIF announced that it would make its biggest single payout after Melissa triggered Jamaica’s tropical cyclone policy, with US $70.8 million being paid to the country.

However, shortly after this, we reported that Jamaica was set to also benefit from a US $21.1 million payout under its CCRIF SPC parametric excess rainfall policy, which took the total that the country would receive to $91.9 million.

Not long after this, the World Bank also confirmed that the Government of Jamaica would receive a full 100% payout of its $150 million IBRD CAR Jamaica 2024 parametric catastrophe bond.

As we reported at the time, this announcement was not particularly unexpected, as just days after Melissa made landfall in Jamaica, the World Bank had suggested that a payout of the country’s catastrophe bond was likely.

Therefore, because Jamaica’s IBRD CAR Jamaica 2024 parametric catastrophe bond paid out in full after hurricane Melissa, this means that the country no longer has that protection in-force for the 2026 season.

Nevertheless, the Government Minister emphasised the ongoing exploration of new disaster risk financing instruments to enhance structural resilience and mitigate potential damage from natural disasters. It’s safe to assume that a new issuance of cat bonds could be one of the avenues under consideration.

Additionally, Williams also confirmed that the Administration will maintain savings in the National Natural Disaster Risk Financing (NNDRF), National Disaster Fund (NDF), and Contingencies Fund, while also seeking to renew contingent credit lines in order to strengthen Jamaica’s risk-retention capacity.

“Having these buffers against natural disasters is an important underpinning when international rating agencies assess Jamaica’s credit worthiness. Our current ratings stand at Moody’s (Ba3) with a ‘Stable’ outlook; Standard and Poor’s (S&P) at ‘BB’, also with a ‘Stable’ outlook, and Fitch at ‘BB’ – equally with a ‘Stable’ outlook,” Williams commented.

She added: “You will note that all the dates for the ratings are all after the Category Five Hurricane Melissa. This is unprecedented in Jamaica’s history, and the people of Jamaica are to be commended for the sacrifices they have made to have our international credit ratings so aligned.”