Catastrophe fund launched by Munich Re
Munich Re is taking part in a new Caribbean catastrophe fund, giving developing nations access to capital markets to cover natural disaster risks for the first time.
The Caribbean Catastrophe Risk Insurance Facility, a scheme in which the World Bank assumes risk that is passed on to Munich Re, involves 16 countries and is believed to be the first transnational catastrophe fund.
The facility, which was launched last week ahead of the hurricane season, could be replicated in other developing areas prone to natural catastrophes.
Munich Re spokesman Georg Daschner says the facility will carry losses up to $US10 million ($12.26 million) and obtain additional capacity of $US110 million ($132.3 million) on the international reinsurance and capital markets.
“The innovative coverage concept developed here can be exported to other countries,” he said. “For us, this means new and profitable business opportunities. We are convinced that we can achieve profitable growth through new concepts.”
The Caribbean Catastrophe Risk Insurance Facility, a scheme in which the World Bank assumes risk that is passed on to Munich Re, involves 16 countries and is believed to be the first transnational catastrophe fund.
The facility, which was launched last week ahead of the hurricane season, could be replicated in other developing areas prone to natural catastrophes.
Munich Re spokesman Georg Daschner says the facility will carry losses up to $US10 million ($12.26 million) and obtain additional capacity of $US110 million ($132.3 million) on the international reinsurance and capital markets.
“The innovative coverage concept developed here can be exported to other countries,” he said. “For us, this means new and profitable business opportunities. We are convinced that we can achieve profitable growth through new concepts.”