The Dominican Republic has become the first country in Latin America and the Caribbean to incorporate parametric insurance into its adaptive social security system. The solution was developed through a tripartite agreement, a public-private partnership between the Insurance Development Forum (IDF), the United Nations Development Program (UNDP) and the German Federal Ministry for Economic Cooperation and Development (BMZ) through the InsuResilience Solutions Fund (ISF).
The parametric solution will initially reach 3,030 climate-vulnerable households in Santo Domingo Norte and Puerto Plata participating in the super conditional cash transfer program, providing households with rapid financial support during extreme rainfall or wind events.
The solution was designed by the IDF consortium, which consists of Guy Carpenter Mexico, AXA Climate, Blue Marble, CelsiusPro and local insurance company Seguros Reservas, and is jointly funded by IDF consortium members and ISF.
The policy launches on June 15, 2026 and was announced today at the Hamburg Sustainability Conference (HSC). The initiative is implemented by the Directorate for Development of the Supreme Society (DDSS), the United Nations Development Program and the Israel Defense Forces, bringing together expertise from the public, private and development sectors.
The solution’s payments, once triggered, are based on independently verified satellite and meteorological data rather than post-disaster damage assessments, allowing affected households to receive support faster when they need it most.
Mayra Jiménez, Director General of the Dominican Republic (DDSS), presented the solution on June 9 at an event hosted by Supérate in Santo Domingo. She said: “This insurance provides additional protection to households most vulnerable to climate-related events. The value is in the speed and timeliness that can translate the country’s response into tangible support when households need it most.”
Ivana Zivkovic, United Nations Assistant Secretary-General and Director of the UNDP Regional Bureau for Europe and the Commonwealth of Independent States, told the HSC: “Protecting people in the event of climate disasters is at the heart of this initiative. By integrating insurance into its super social protection scheme, the Dominican Republic combines innovation, financial protection and social inclusion to help vulnerable households recover faster from climate shocks. The Dominican Republic’s approach provides a scalable model that can help shape a climate-resilient future around the world.”
Birgit Pickel, Director General for Sustainability and Climate Affairs at BMZ, added: “Climate resilience requires systems that can predict and manage risks before disasters occur. The Dominican Republic is showing how partnerships between governments, development agencies and the private sector can build these systems and strengthen resilience where it matters most: vulnerable households.”
Ivo Menzinger, Chairman of the IDF Operating Committee, said: “This initiative in the Dominican Republic shows how countries are leveraging the insurance industry’s capabilities to strengthen pre-disaster preparedness, protect lives, maintain financial stability and support long-term development goals. By leveraging innovative insurance solutions and advanced technology, this product provides financial protection tailored to the country’s needs.”
Dr. Annette Detken, Head of the InsuResilience Solutions Fund, commented: “This initiative highlights the important role innovative insurance solutions can play in strengthening social protection systems and helping vulnerable households recover more quickly from climate-related shocks. We are proud to support a solution that demonstrates how to build resilience at scale in the Dominican Republic and beyond.”
This initial phase of parametric insurance models represents an important step towards an adaptive and anticipatory social security system.
