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IDB secures $20M parametric hurricane swap for Belize with Swiss Re
The swap provides Belize coverage tied to pre agreed hurricane triggers through May 31, 2028.
The Inter-American Development Bank (IDB) has arranged its first sovereign parametric catastrophe swap, providing Belize with $20 million in hurricane risk transfer underwritten by Swiss Re, Artemis reports.
Belize’s protection is designed to be triggered by pre agreed parametric conditions, and if those triggers are met the country would be eligible for a maximum payout of $10 million per policy year, according to the transaction terms.
The catastrophe swap runs from August 1 this year through May 31, 2028, covering the 2026 and 2027 hurricane seasons, and the risk transfer is intended to support Belize’s ability to respond across two seasons.
The deal was executed under the IDB’s Ready and Resilient Americas program, and builds on existing IDB support for disaster preparedness and financing, including $25 million of contingent financing through its Contingent Credit Facility for Natural Disaster Emergencies and $118 million in approved loans protected by Climate Resilient Debt Clauses, Artemis adds.