Climate Insurance Solutions for Government Emergency Funding
BY BLUE MARBLE MICRO
REGION
Latin America
INDUSTRY
Public sector
PARTNERS
Government
CATEGORY
Modeling, Covering
SERVICE
Insurance
RISK
Drought and Hurricane
STRUCTURE
Macro
IMPACT
Climate resilience and adaptation
Challenge
In many hurricane prone Latin American countries, governments struggle to shield their most vulnerable citizens from the impacts of hurricanes, floods, and droughts. Extreme weather events routinely damage homes, erode harvests, and disrupt water supplies which place significant strain on public budgets. While an emergency aid program exists to provide relief, it relies on limited, fixed funds and lengthy assessments which delay payouts. These delays make it challenging for governments to respond quickly, leaving both citizens and public finances increasingly at risk.
Solution
To address this vulnerability, Blue Marble has designed a sovereign risk insurance product to give the government rapid access to funds when extreme weather events occur. Using rainfall, wind, and drought data, the product triggers payouts automatically when thresholds are met, allowing resources to flow quickly. Integrated into the country’s existing social protection system, this coverage ensures that emergency aid can reach poor and vulnerable households faster and more reliably. The insurance offers the government a sustainable tool to address climate events and improve disaster response.
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