World Bank2014-06-112014-06-112014-04https://hdl.handle.net/10986/18635Countries in the Caribbean and Central America are highly vulnerable to the adverse effects associated with earthquakes, tropical cyclones, and other major hydro-meteorological events such as excessive rainfall. Aftermath of disasters typically place significant strain on the fiscal systems of affected countries. Consequently, ministers of the Central American integration system (SICA) and Caribbean community (CARICOM) countries have expressed a strong intention to collectively manage the disaster risk. By understanding the loss potential of disasters caused by natural events and the extent of public intervention in recovery and reconstruction efforts, governments can ascertain their respective contingent liabilities. Sovereign disaster risk financing and insurance can also safeguard against sudden macroeconomic shocks that negatively impact fiscal performance, and in turn, economic development. Caribbean and Central American governments are constrained in their ability to access quick liquidity to absorb fiscal shocks associated with natural hazard impacts because they have limited ability to create contingency funds, and limited capacity for external borrowing. The World Bank in partnership with the United States department of treasury assessed various options, which guided Ministers of Finance of Central America, Panama, and the Dominican Republic (COSEFIN) to identify the Caribbean catastrophe risk insurance facility (CCRIF) as the best option. The CCRIF provides cost-effective and fast-disbursing liquidity, and is an efficient way to finance a liquidity gap arising in the immediate aftermath of disaster.en-USCC BY 3.0 IGOACCOUNTABILITYADMINISTRATIVE COSTSANNUAL FINANCIAL STATEMENTSAUDITSBUILDING CODESCAPITAL MARKETSCAPITALIZATIONCAPTIVE INSURANCECAPTIVE INSURANCE COMPANIESCATASTROPHE COVERAGECATASTROPHE INSURANCECATASTROPHE RISK FINANCINGCATASTROPHESCATASTROPHIC EVENTSCLIMATECLIMATE CHANGECLIMATE RISK INSURANCECONTINGENT LIABILITIESCONTINGENT LIABILITYCOST OF CAPITALCOST OF INSURANCECOST OF REINSURANCECYCLONE EVENTSDAMAGESDAT DATABASEDEBTDISASTERDISASTER EVENTDISASTER EVENTSDISASTER RECONSTRUCTIONDISASTER RECOVERYDISASTER REDUCTIONDISASTER RISKDISASTER RISK FINANCINGDISASTER RISK REDUCTIONDISASTER RISKSDISASTERSDONOR COMMUNITYDONOR PLEDGESEARLY WARNINGEARLY WARNING SYSTEMSEARTHQUAKEEARTHQUAKE INSURANCEECONOMIC BENEFITSECONOMIC IMPACTECONOMIC IMPACT OF CLIMATE CHANGEEFFECTS OF EARTHQUAKESEFFICIENCY GAINSEMERGENCIESEMERGENCY RESPONSEEMERGENCY RESPONSE ACTIVITIESEXTREME RAINFALLEXTREME RAINFALL EVENTSFINANCIAL CAPACITYFINANCIAL INSTRUMENTSFINANCIAL NEEDSFINANCIAL RESILIENCEFINANCIAL STABILITYFINANCIAL STRUCTUREFINANCIAL SUPPORTFIXED COSTSFLOODFLOODINGFLOODSFOREIGN AFFAIRSHURRICANEHURRICANE CENTERHURRICANE SEASONHURRICANESIMPACT OF DISASTERSINDEMNITYINDEMNITY INSURANCEINSURANCE ACTIVITIESINSURANCE COMPANYINSURANCE COVERAGEINSURANCE DESIGNINSURANCE INSTRUMENTSINSURANCE PAYOUTINSURANCE POLICIESINSURANCE PORTFOLIOINSURANCE PREMIUMINSURANCE PREMIUMSINSURANCE PRODUCTINSURANCE PRODUCTSINSURERSLANDSLIDESLAWSMINISTRIES OF FINANCEMITIGATIONMONETARY FUNDMORAL HAZARDNATURAL CATASTROPHESNATURAL HAZARDNATURAL HAZARDSOPERATING COSTSOPERATING EXPENDITURESPARAMETRIC INSURANCE PRODUCTSPORTFOLIOPRIMARY INSURERPRIVATE INSURANCEPROGRAMSPUBLIC DEBTRATESREINSURANCEREINSURANCE CONTRACTREINSURANCE CONTRACTSREINSURANCE MARKETSREINSURANCE PREMIUMSREINSURERREINSURERSRELIEFRESERVESRISK ASSESSMENTRISK ASSESSMENTSRISK EXPOSURERISK INSURANCERISK MANAGEMENTRISK PROFILESRISK REDUCTIONRISK TRANSFERSAFETYSAVINGSSCENARIOSSOCIAL SAFETY NETSSOLVENCYSOVEREIGN RISKSTORMSTORM SURGESTORMSSUBSIDIARYSUSTAINABILITYTECHNICAL ASSISTANCETRANSPORTTROPICAL CYCLONETROPICAL CYCLONESUNDERWRITINGWIND SPEED10.1596/18635