world bank

The World Bank has called for the ongoing development of its Pandemic Emergency Financing Facility (PEF), to incentivise greater investment in preparedness, and take advantage of the opportunity to deliver business interruption (BI) cover for the private sector as it works towards PEF-2.

The Philippines has long been the focus of disaster risk financing and insurance discussions, given its exposure to typhoons, earthquakes, fires, rainfall, floods and drought, and now the Asian Development Bank (ADB) is examining options for disaster insurance facilities.

The World Bank is working hard on its initiative that it terms the “first-ever insurance market for pandemic risk”, the Pandemic Emergency Financing Facility (PEF) and hopes to see a transaction come to market this year.

The World Bank’s Global Index Insurance Facility (GIIF) and African Reinsurance Corporation (Africa Re) have teamed up to provide a facility that will help to cap insurers loss ratios on weather index-insurance schemes in Africa.

International catastrophe risk modeling firm AIR Worldwide has been selected by the World Bank to model the Pandemic Emergency Financing Facility (PEF), and has also announced substantial enhancements to its Global Pandemic Model.

Climate change impacts will directly and indirectly exacerbate the frequency and intensity of pandemic outbreaks, according to research, emphasising the importance of the Pandemic Emergency Financing Facility (PEF), reinsurance and other risk transfer solutions.

The World Bank has launched the “first-ever insurance market for pandemic risk”, the Pandemic Emergency Financing Facility (PEF), which is designed to rapidly disburse capital in the event of deadly pandemics and will be backed by pandemic catastrophe bonds and reinsurance.

The Philippines has secured a new catastrophe contingent line of credit, to support its management of the risks posed by natural disasters, with a $500 million Second Disaster Risk Management Development Policy Loan with a Catastrophe-Deferred Drawdown Option (CAT-DDO 2).

The Mexican government has confirmed that it will seek to renew its MultiCat Mexico catastrophe bond protection in October, with another three-year term of catastrophe insurance protection expected to be secured from a MultiCat Mexico 2015 issuance.

The World Bank has significantly expanded the range of disaster risk transfer, management and financing options it offers to clients, adding coverage for risks outside of pure natural catastrophe events and also insurance or reinsurance options.