Investors in catastrophe bonds have enjoyed double-digit returns while issuers face soaring costs, raising concerns about the fairness of this financial strategy.
The case of Jamaica's catastrophe bond not triggering payouts after Hurricane Beryl highlights potential flaws, leading Caribbean leaders to call for a review of these investment instruments.
Jwala Rambarran stated that while investors need to see returns, there must be a balance as it's unfair for returns to come at the expense of issuers.
Caribbean officials are pushing for a deeper examination of catastrophe bonds as they seek a more equitable risk-reward dynamic in the insurance-linked securities market.
#catastrophe-bonds #investment-returns #insurance-linked-securities #caribbean-economy #financial-equity
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