The World Bank Implementation Status & Results Report Central America & Caribbean Catastrophe Risk Insurance Project (P149670) Central America & Caribbean Catastrophe Risk Insurance Project (P149670) LATIN AMERICA AND CARIBBEAN | Latin America | Urban, Resilience and Land Global Practice | Recipient Executed Activities | Investment Project Financing | FY 2015 | Seq No: 9 | ARCHIVED on 27-Oct-2020 | ISR43808 | Implementing Agencies: CCRIF SPC, CCRIF SPC Key Dates Key Project Dates Bank Approval Date: 30-Jun-2015 Effectiveness Date: 14-Oct-2015 Planned Mid Term Review Date: -- Actual Mid-Term Review Date: Original Closing Date: 30-Jun-2019 Revised Closing Date: 31-Dec-2021 pdoTable Project Development Objectives Project Development Objective (from Project Appraisal Document) The Project Development Objective (PDO) is to improve affordability of high quality sovereign catastrophe risk transfer associated with earthquakes and climate-related events for CCRIF Participating Countries. Has the Project Development Objective been changed since Board Approval of the Project Objective? No Components Table Name Component 1: Parametric Insurance associated with Risks related to Geophysical Events for COSEFIN Participating Countries:(Cost $9.50 M) Component 2: Parametric Climate Risk Insurance for COSEFIN Participating Countries:(Cost $22.75 M) Component 3: Parametric Climate Risk Insurance for CARICOM Participating Countries:(Cost $15.00 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Satisfactory Satisfactory Overall Implementation Progress (IP) Satisfactory Satisfactory Overall Risk Rating Moderate Moderate Implementation Status and Key Decisions For policy year 2020/21, Nicaragua renewed its earthquake, tropical cyclone, and excess rainfall policies for the fifth consecutive year. Panama and Guatemala renewed their excess rainfall coverage. Other member countries of the Council of the Ministers of Finance of Central America, Panama, and the Dominican Republic (COSEFIN), including Costa Rica and the Dominican Republic, have been working closely with CCRIF SPC to establish the necessary technical and institutional conditions that will allow them to join the CCRIF SPC during policy year 2020/21. Ten Caribbean governments increased their coverage level for at least one of their policies, and one country purchased coverage for an additional peril, tropical cyclones. In total, 19 Caribbean member countries purchased 16 excess rainfall policies, 18 tropical cyclone policies, and 14 earthquake policies. In support of COVID-19 recovery, CCRIF SPC has agreed to give member countries a discount on the premiums for the next policy years, worth 26% of the premium total for Caribbean countries and 50% of the premium total for Central American countries. 10/27/2020 Page 1 of 8 The World Bank Implementation Status & Results Report Central America & Caribbean Catastrophe Risk Insurance Project (P149670) For Central America, under the 2019/20 policy, Guatemala received a payout of US$3.6 million on June 22, 2020, for rains associated with Tropical Storm Amanda. For the Caribbean, under the 2019/20 policy, Belize received a payout of US$203,136 on June 24, 2020, for rains associated with Tropical Storm Amanda. Under the 2020/21 policy, Haiti received a payout of US$7.45 million on September 8, 2020, following the passage of Tropical Cyclone Laura. Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance -- Moderate Moderate Macroeconomic -- Low Low Sector Strategies and Policies -- Low Low Technical Design of Project or Program -- Moderate Moderate Institutional Capacity for Implementation and -- Moderate Moderate Sustainability Fiduciary -- Low Low Environment and Social -- Low Low Stakeholders -- Substantial Substantial Other -- Moderate Moderate Overall -- Moderate Moderate Results PDO Indicators by Objectives / Outcomes Improved affordability of high-quality sovereign catastrophe risk transfer products IN00903177 ►CCRIF premiums are lower than the simulated price for a comparable coverage that any member country could purchase individually in the market (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value Yes Yes Yes Yes Date 30-Jun-2015 16-Dec-2019 30-Sep-2020 31-Dec-2021 IN00903178 ►Any CCRIF member country with catastrophe risk coverage has received payment within a month of the occurrence of an event which triggers an eligible loss (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target 10/27/2020 Page 2 of 8 The World Bank Implementation Status & Results Report Central America & Caribbean Catastrophe Risk Insurance Project (P149670) Value 0.00 100.00 100.00 100.00 Date 30-Jun-2015 16-Dec-2019 30-Sep-2020 31-Dec-2021 The following payouts were made to countries within 14 days of the event:  Guatemala received a payout of US$3.6 million on June 22, 2020, for rains associated with Tropical Storm Amanda. Under the 2019/20 policy,  Belize received a payout of US$203,136 million on June 24, 2020, for rains associated with Comments: Tropical Storm Amanda. Under the 2020/21 policy.  Haiti received a payout of US$7.45 million on September 8, 2020, following the Passage of Tropical Cyclone Laura. Intermediate Results Indicators by Components Component 3: Parametric Climate Risk Insurance for CARICOM Participating Countries IN00903214 ►Increased access by CARICOM countries to products for risks related to climate related events (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 8.00 14.00 18.00 14.00 Date 30-Jun-2015 16-Dec-2019 30-Sep-2020 31-Dec-2021 Component 1: Parametric Insurance associated with Risks related to Geophysical Events for COSEFIN Participating Countries IN00903179 ►Increased access by COSEFIN countries to products for risks related to geophysical events (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 1.00 1.00 2.00 Date 30-Jun-2015 16-Dec-2019 30-Sep-2020 31-Dec-2021 Component 2: Parametric Climate Risk Insurance for COSEFIN Participating Countries IN00903213 ►Increased access by COSEFIN countries to products for risks related to climate-related events (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 3.00 3.00 3.00 Date 30-Jun-2015 16-Dec-2019 30-Sep-2020 31-Dec-2021 Component 1: Parametric Insurance associated with Risks related to Geophysical Events for COSEFIN Participating Countries IN00903180 ►Earthquake risk policies for COSEFIN member countries provide increasing insurance coverage and/or a lower attachment point (insurance deductible) for a given premium amount (Yes/No, Custom) 10/27/2020 Page 3 of 8 The World Bank Implementation Status & Results Report Central America & Caribbean Catastrophe Risk Insurance Project (P149670) Baseline Actual (Previous) Actual (Current) End Target Value No Yes Yes Yes Date 30-Jun-2015 16-Dec-2019 30-Sep-2020 31-Dec-2021 Earthquake risk policies for COSEFIN member countries provided 16% increasing insurance coverage (using as a baseline the premium for policy year 2015/16 for Nicaragua. The attachment point remains Comments: unchanged. IN00903215 ►Pricing of the earthquake risk policies purchased by COSEFIN member countries has actuarial consistency with CCRIF's survivability and long-term sustainability (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No Yes Yes Yes Date 30-Jun-2015 16-Dec-2019 30-Sep-2020 31-Dec-2021 IN00903218 ►Number of products improved for risks related to geophysical events, accessible to COSEFIN countries (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 1.00 1.00 1.00 Date 30-Jun-2015 16-Dec-2019 30-Sep-2020 31-Dec-2021 IN00903221 ►Number of COSEFIN countries subscribing to products for risk related geophysical events (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 1.00 1.00 2.00 Date 30-Jun-2015 16-Dec-2019 30-Sep-2020 31-Dec-2021 Component 2: Parametric Climate Risk Insurance for COSEFIN Participating Countries IN00903211 ►Climate risk related policies for COSEFIN member countries provide increasing insurance coverage and/or a lower attachment point (insurance deductible) for a given premium amount (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No Yes Yes Yes Date 30-Jun-2015 16-Dec-2019 30-Sep-2020 31-Dec-2021 Climate risk related policies for COSEFIN member countries that provide increasing insurance coverage for a given premium amount:  Nicaragua (baseline policy year 2015/16 for tropical cyclone): 23% insurance coverage increase Comments:  Nicaragua (baseline policy year 2015/16 for excess rainfall): 29% insurance coverage decrease  Panama (baseline policy year 2018/19 for excess rainfall): No change  Guatemala (baseline policy year 2019/20 for excess rainfall): 3% insurance coverage ncrease 10/27/2020 Page 4 of 8 The World Bank Implementation Status & Results Report Central America & Caribbean Catastrophe Risk Insurance Project (P149670) Climate risk related policies for COSEFIN member countries that provide a lower attachment point (insurance deductible) for a given premium amount:  Nicaragua (baseline policy year 2015/16 for tropical cyclone): The policy provide a lower the attachment point (2%)  Nicaragua (baseline policy year 2015/16 for excess rainfall): The policy provide a higher the attachment point (53%)  Panama (baseline policy year 2018/19 for excess rainfall): The policy provide a lower the attachment point (36%)  Guatemala (baseline policy year 2019/20 for excess rainfall): The policy provide a lower the attachment point (31%). Summary: Nicaragua TC (Y-increased coverage), Nicaragua XSR (Y-lower attachment point), Guatemala (Y-lower attachment point), Panama (Y-increased coverage and lower attachment point). IN00903216 ►Pricing of the climate risk related policies purchased by COSEFIN member countries has actuarial consistency with CCRIF's survivability and long-term sustainability (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value No Yes Yes Yes Date 30-Jun-2015 16-Dec-2019 30-Sep-2020 31-Dec-2021 IN00903219 ►Number of new products developed for risks related to climate events, accessible to COSEFIN countries (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 1.00 1.00 2.00 Date 30-Jun-2015 16-Dec-2019 30-Sep-2020 31-Dec-2021 IN00903222 ►Number of products improved for risks related to climate events, accessible to COSEFIN countries (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 2.00 2.00 3.00 Date 30-Jun-2015 16-Dec-2019 30-Sep-2020 31-Dec-2021 IN00903224 ►Number of COSEFIN countries subscribing to products for risks related to climate events (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 1.00 3.00 3.00 3.00 Date 30-Jun-2015 16-Dec-2019 30-Sep-2020 31-Dec-2021 Component 3: Parametric Climate Risk Insurance for CARICOM Participating Countries IN00903212 ►Climate risk related policies for CARICOM member countries provide increasing insurance coverage and/or a lower attachment point (insurance deductible) for a given premium amount (Yes/No, Custom) 10/27/2020 Page 5 of 8 The World Bank Implementation Status & Results Report Central America & Caribbean Catastrophe Risk Insurance Project (P149670) Baseline Actual (Previous) Actual (Current) End Target Value No Yes Yes Yes Date 30-Jun-2015 16-Dec-2019 30-Sep-2020 31-Dec-2021 For the aggregated portfolio (using the first year of purchase as the baseline), Climate risk-related policies for CARICOM member countries provide increasing insurance coverage:  Excess rainfall: 6 out of 16 policies for the year 2020/21 provide increasing insurance coverage by an average of 15% (8 policies provided decreasing coverage by an average of 32%, and two remain unchanged).  Tropical Cyclone: 8 out of 17 policies for the year 2021 provide increasing coverage by an average of 21% (8 policies provide decreasing coverage by an average of 23%, and 2 remain unchanged). Comments: For the aggregated portfolio (using the first year of purchase as the baseline), Climate risk-related policies for CARICOM member countries provide a lower attachment point (insurance deductible) for a given premium.  Excess rainfall: 4 Policies for policy year 2020/21 provide lower the attachment points by an average of 42% (11 provide higher attachment points by an average of 135%, and one remained unchanged).  Tropical cyclone: 2 Policies for policy year 2020/21 provide lower the attachment points by an average of 10% (14 provide higher attachment points by an average of 369% and two remained unchanged). IN00903217 ►Pricing of the climate risk related policies purchased by CARICOM member countries has actuarial consistency with CCRIF?s survivability and long-term sustainability (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value Yes Yes Yes Yes Date 30-Jun-2015 16-Dec-2019 30-Sep-2020 31-Dec-2021 IN00903220 ►Number of new products developed for risks related to climate events, accessible to CARICOM countries (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 1.00 0.00 1.00 2.00 Date 30-Jun-2015 16-Dec-2019 30-Sep-2020 31-Dec-2021 IN00903223 ►Number of products improved for risks related to climate events, accessible to CARICOM countries (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 2.00 2.00 3.00 Date 30-Jun-2015 16-Dec-2019 30-Sep-2020 31-Dec-2021 IN00903225 ►Number of CARICOM countries subscribing to products for risks related to climate events (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target 10/27/2020 Page 6 of 8 The World Bank Implementation Status & Results Report Central America & Caribbean Catastrophe Risk Insurance Project (P149670) Value 8.00 14.00 18.00 14.00 Date 30-Jun-2015 16-Dec-2019 30-Sep-2020 31-Dec-2021 Performance-Based Conditions Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P149670 TF-A0564 Effective USD 19.50 19.50 0.00 10.47 9.03 54% P149670 TF-A5343 Effective USD 23.75 23.75 0.00 13.28 10.47 56% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P149670 TF-A0564 Effective 30-Jun-2015 16-Jul-2015 14-Oct-2015 30-Jun-2019 31-Dec-2021 P149670 TF-A5343 Effective 25-Jul-2017 14-Aug-2017 31-Oct-2017 30-Jun-2019 31-Dec-2021 Cumulative Disbursements 10/27/2020 Page 7 of 8 The World Bank Implementation Status & Results Report Central America & Caribbean Catastrophe Risk Insurance Project (P149670) PBC Disbursement Achievement Disbursed amount in Disbursement % PBC ID PBC Type Description Coc PBC Amount Status Coc for PBC Restructuring History Level 2 Approved on 28-Jun-2019 ,Level 2 Approved on 27-Dec-2019 ,Level 2 Approved on 09-May-2020 Related Project(s) P163312-AF to the Central America & Caribbean Catastrophe Risk Insurance Project 10/27/2020 Page 8 of 8