The development of risk markets in the region
The financial risk instruments related to natural disasters and climate change have a great potential in the region. The Bank is working with several member countries, insurance firms and other international financial institutions to develop broader and deeper local risk markets in Latin America.
In one side the IDB is supporting the improvements in the regulation and supervision frameworks to ensure the right environment for private sector development.
And in the other side, the IBD strongly believes in the benefits of public-private partnerships and is looking for private sector partners in the region to start new projects. The IDB is interested in co-finance micro insurance and agricultural insurance, food securities, and many other natural disaster risk transfer products.
Financing the Initiative: The IDB has committed itself with the Financial Approach offering new financial instruments like the Contingent Credit facility for US$600 million, but also grant financing (US$ 3 million in non reimbursable technical assistance) to provide technical expertise to develop the approach.
As we move forward we seek new donors to keep providing the financial support needed by the countries to achieve the necessary coverage.