The Inter-American Development Bank (IDB) has issued a parametric insurance coverage for hurricane risk in Belize of up to USD 20 million, subject to a maximum payout of USD 10 million per policy year, backed by Swiss Re, one of the world’s leading reinsurance companies.
The transaction saw the IDB arrange the transfer of a layer of Belize’s hurricane risk to international reinsurance markets through Swiss Re, from 1 August, 2026 through 31 May, 2028, ensuring quick access to financing once the policy is triggered.
The new, parametric risk-transfer protection complements the USD 25 million in contingent financing already available to Belize through the IDB’s Contingent Credit Facility for Natural Disaster Emergencies (CCF), and the USD 118 million in approved loans protected by Climate Resilient Debt Clauses (CRDC) that will allow the country to postpone principal payments for two years following the occurrence of an eligible natural disaster.
The move aims to allow Belize access to emergency funds more rapidly after a major hurricane, strengthening the country’s financial resilience and ability to respond to disasters over the next two hurricane seasons.
The transaction is backed by technical cooperation resources from the Ready and Resilient Americas Initiative, donor contributions from the French Climate Fund, and the government of Belize’s contribution toward the premium.
IDB explained, “The catastrophe swap is part of the IDB’s broader support to Belize in implementing its financial risk management strategy and strengthening the country’s financial resilience to disasters.”
The catastrophe swap highlights the importance of partnerships in scaling innovative financial solutions for resilience and reflects Belize’s strong commitment and engagement throughout the process.
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