multicat program

The first catastrophe bond covering earthquake risks from the government of Colombia is expected to be launched within a matter of weeks, according to the country’s Minister of Finance and Public Credit, as the country looks to capital market sources to improve its disaster risk transfer and financing.

The Pacific Alliance trade bloc in Latin America has now signed an agreement with the World Bank to issue a catastrophe bond transaction in 2018 to protect against natural catastrophe events across the member countries.

The Philippines Insurance Commission has renewed its efforts to push through a bill that would make property catastrophe insurance mandatory in the country, after lobbying failed to get the idea ratified before the change of President in the country.

Chile is the latest sovereign government that is reportedly looking to a catastrophe bond issuance, providing a responsive source of disaster risk insurance or financing, as part of a goal to become more responsible about disaster and weather risk management.

The World Bank has confirmed that it is working on a multi-level approach to catastrophe insurance and disaster risk transfer for the Philippines, with catastrophe bonds one of the financial instruments options on the table.

The Philippines is in the final stages of the lengthy process of working towards issuing its first catastrophe bond. Working with the World Bank, the Philippines will target an issuance of between $100m and $300m in size, according to Cesar Purisima, Finance Secretary.

The World Banks MultiCat catastrophe bond program was launched back in September 2009 with the MultiCat Mexico 2009 Ltd. catastrophe bond which provides Mexico with three years of cover against earthquakes and hurricanes which impact their FONDEN disaster fund.

The World Bank has published an announcement regarding its involvement in the MultiCat Mexico 2009 Ltd. catastrophe bond transaction. Their International Bank for Reconstruction and Development organisation was involved in helping the deal come to market and now it transpires that this could be just the first deal under a new facility called the MultiCat […]