NEW YORK, June 23, 2022 - WTW (Nasdaq: WTW), a leading global advisory, broking and solutions company, has today announced that its Climate and Resilience Hub and Alternative Risk Transfer teams received the Climate Risk Initiative of the Year award from InsuranceERM, the insurance risk and capital management publication.
WTW was recognized for developing the world's first bespoke parametric insurance solution that supported a ground-breaking debt restructuring program for marine conservation for the Government of Belize led by the NatureVest team at The Nature Conservancy and Credit Suisse.
Located on the Caribbean coast of Central America, Belize is in the top 5% of countries globally for losses due to climate-related natural disasters, with annual average losses amounting to an estimated 7% of GDP and with historical hurricanes having caused major disruptions to its economy and even prompting the relocation of its capital.
For its Climate Risk Initiative of the Year award, WTW created the world’s first sovereign debt “catastrophe wrapper” for the Blue Bond transaction, which provides insurance protection to cover Belize’s loan repayments after hurricane events. The wrapper that is structured around the 20-year sovereign debt arrangement strengthens sustainability and resilience to climate shocks that have previously triggered credit-rating downgrades, and intensified economic hardship for the country.
Underwritten by reinsurer Munich Re, insurance protection played a crucial role in enabling Belize to refinance its sovereign debt under The Nature Conservancy’s (TNC) ‘Blue Bonds for Ocean Conservation Program’. The overall debt restructuring will unlock around US$80 million over 20 years to fund Belize’s national environmental and conservation commitments.
“The parametric wrapper is a great solution for the financial resilience of island and coastal nations, and demonstrates the power of parametric insurance,” said Simon Young, Senior Director, Climate and Resilience Hub, WTW. “Our work has demonstrated how the tools and techniques of insurance can be turned into support for ESG objectives. This award reflects the value of teamwork in serving all of our clients and recognizes WTW’s industry-leading position in the development and implementation of innovative disaster risk financing solutions."
The InsuranceERM judging panel consisted of industry professionals with deep experience in risk and capital management, who were carefully selected for their industry knowledge and objectivity.
To learn more about WTW’s Climate Services, please visit Climate and Resilience Hub.
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