Parametric Tropical Cyclone Insurance Grant

About this grant

This parametric insurance product protects Caribbean and Central American governments against tropical cyclone damage. When a cyclone event meets pre-agreed intensity thresholds based on catastrophe model loss estimates, eligible governments receive payouts within 14 days, enabling rapid disaster recovery funding. Local authorities and government entities in Antigua and Barbuda, Bahamas, Barbados, Belize, Costa Rica, Dominica, El Salvador, Grenada, Guatemala, Honduras, Jamaica, Nicaragua, Panama, Saint Kitts and Nevis, Saint Lucia and Saint Vincent and the Grenadines, and Trinidad and Tobago may apply. The instrument is concessional finance designed to help sovereign nations manage catastrophic climate risks.

Key requirements

• ✓Eligible applicant must be a Caribbean or Central American government entity
• ✓Coverage triggered by tropical cyclone events meeting parametric thresholds based on catastrophe model loss estimates
• ✓Payouts issued within 14 days of event trigger

Frequently asked questions

Who can apply for Parametric Tropical Cyclone Insurance?

Eligibility covers organisations in BB, AG, DM, GD, KN, LC and 10 more countries; local-authority.

Relevant sectors

About this sector

Climate adaptation funding helps communities, infrastructure and businesses prepare for heat, flooding, drought and sea level rise. Most of it is public and multilateral money, often targeted at vulnerable regions and delivered with local government. Calls usually ask for a climate risk assessment and evidence that local people shaped the plan.