Natural disasters, climate change, and public health risks are major challenges facing Latin America and the Caribbean (LAC). The Risk Finance and Insurance Group of the Connectivity, Markets and Finance Division (CMF) plays a leading role in this sector by supporting the region in achieving a more effective ex ante risk financing and transfer strategy, thus helping build the critical resilience capacities to advance towards the path of sustainable development.
The Group's work focuses on the design and implementation of innovative risk financing and insurance solutions for natural disasters, climate hazards and public health risks, with emphasis on sustainability, scalability, gender perspective and the use of digital technology. Among these solutions are the Contingent Credit Facility for Natural Disaster and Public Health Emergencies (CCF) and the Principal Payment Option (PPO), which are innovative financial instruments to foster greater resilience in LAC countries, through ex-ante planning and advance financing of contingent fiscal liabilities.
Under the leadership of CMF's Risk Financing and Insurance Group, the IDB has become one of the leading multilateral development institutions providing financial coverage in the LAC region for earthquakes, hurricanes, floods, wildfires, droughts, and public health risks.