Public Disclosure Copy 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 | Social, Urban, Rural and Resilience Global Practice Global Practice | Recipient Executed Activities | Investment Project Financing | FY 2015 | Seq No: 1 | ARCHIVED on 09-Oct-2015 | ISR20785 | Implementing Agencies: CCRIF SPC Key Dates Key Project Dates Board Approval date:30-Jun-2015 Effectiveness Date:-- Planned Mid Term Review Date:01-Aug-2017 Actual Mid-Term Review Date:-- Original Closing Date:30-Jun-2019 Revised Closing Date:30-Jun-2019 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 PHRPDODEL Components Name Component 1: Finance Parametric Earthquake Risk Insurance for COSEFIN Participating Countries:(Cost $7.00 M) Component 2: Finance Parametric Climate Risk Insurance for COSEFIN Participating Countries:(Cost $12.50 M) Component 3: Finance Parametric Climate Risk Insurance for CARICOM Participating Countries:(Cost $4.00 M) Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO  --  Satisfactory Overall Implementation Progress (IP)  --  Satisfactory Overall Risk Rating  --  Substantial 10/9/2015 Page 1 of 9 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Central America & Caribbean Catastrophe Risk Insurance Project (P149670) Implementation Status and Key Decisions This is an initial ISR for the Central America and Caribbean Catastrophe Risk Insurance Project. The Project was approved by the World Bank's Regional Vice President for Latin America and Caribbean Region on June 30, 2015.The Grant Agreement with CCRIF Segregated Portfolio Company (CCRIF SPC) was signed on July 16, 2015. 10/9/2015 Page 2 of 9 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Central America & Caribbean Catastrophe Risk Insurance Project (P149670) Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance  --  --  Moderate 10/9/2015 Page 3 of 9 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Central America & Caribbean Catastrophe Risk Insurance Project (P149670) Macroeconomic  --  --  Moderate Sector Strategies and Policies  --  --  Low Technical Design of Project or Program  --  --  Moderate Institutional Capacity for Implementation and Sustainability  --  --  Substantial Fiduciary  --  --  Moderate Environment and Social  --  --  Low Stakeholders  --  --  Substantial Other  --  --  Moderate Overall  --  --  Substantial Results Project Development Objective Indicators PHINDPDOTBL  CCRIF premiums are lower than the simulated price for a comparable coverage that any member country could purchase individually in t he market (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value Y -- Y Y Date 30-Jun-2015 -- 01-Oct-2015 30-Jun-2019 Comments By modeled estimates at time of Project preparation, CCRIF premiums for COSEFIN countries remain lower than the simulated price for a comparable coverage purchased individually in the market. Information for this indicator will be updated periodically based on CCRIF reports. PHINDPDOTBL  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 Value 0.00 -- 100.00 100.00 Date 30-Jun-2015 -- 01-Oct-2015 30-Jun-2019 Comments Since approval of the Project in June 2015, one event occurred that triggered the insurance policy of a CCRIF member country: Within a month, CCRIF SPC had made payment to the Government of Dominica in the maximum payable amount under its excess rainfall policy (US$ 2.4 million) following the rains that occurred during Tropical Storm Erika on August 27, 2015 (per CCRIF SPC's press release dated September 10, 2015). 10/9/2015 Page 4 of 9 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Central America & Caribbean Catastrophe Risk Insurance Project (P149670) Overall Comments Intermediate Results Indicators PHINDIRITBL  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) Baseline Actual (Previous) Actual (Current) End Target Value -- -- -- Y Date 30-Jun-2015 -- 01-Oct-2015 30-Jun-2019 Comments Baseline values for the first year of coverage: Nicaragua (for the 2015-2016 policy period): For a US$ 500,000 premium for earthquake coverage, the attachment point (insurance deductible) is $20,958,698. The exhaustion point is $286,748,494 and the coverage limit is $9,926,983. PHINDIRITBL  Pricing of the earthquake risk policies purchased by COSEFIN member countries has actuarial consistency with CCRIF’s survivability and long-term sustainability (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value -- -- -- Y Date 30-Jun-2015 -- 01-Oct-2015 30-Jun-2019 Comments Baseline: No track record. 10/9/2015 Page 5 of 9 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Central America & Caribbean Catastrophe Risk Insurance Project (P149670) PHINDIRITBL  Fulfillment of technical preconditions to offer excess rainfall products that are credible to the reinsurance market (per COSEFIN country) (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- -- 3.00 Date 30-Jun-2015 -- 01-Oct-2015 30-Jun-2019 Comments Baseline: No countries with technical design work completed. PHINDIRITBL  Climate risk related policies for COSEFIN member countries provide increasing insurance coverage and/or a lower attachment point (insurance deductible) for a given premium amount (Yes/No, Custom) Baseline Actual (Previous) Actual (Current) End Target Value -- -- -- Y Date 30-Jun-2015 -- 01-Oct-2015 30-Jun-2019 Comments Baseline values for the first year of coverage: Nicaragua (for the 2015-2016 policy period): For a US$ 500,000 premium for tropical cyclone coverage, the attachment point (insurance deductible) is $607,577. The exhaustion point is $83,667,096 and the coverage limit is $8,091,944. PHINDIRITBL  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 -- -- -- Y Date 30-Jun-2015 -- 01-Oct-2015 30-Jun-2019 Comments Baseline: No track record. 10/9/2015 Page 6 of 9 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Central America & Caribbean Catastrophe Risk Insurance Project (P149670) PHINDIRITBL  Fulfillment of technical preconditions for improved models for CARICOM countries with excess rainfall coverage and/or development of new models to offer climate risk products to these countries (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 -- -- 4.00 Date 30-Jun-2015 -- 01-Oct-2015 30-Jun-2019 Comments Baseline: 8 CARICOM countries with country -risk excess rainfall models calibrated and with coverage for the 2014-2015 season. PHINDIRITBL  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) Baseline Actual (Previous) Actual (Current) End Target Value -- -- -- Y Date 30-Jun-2015 -- 01-Oct-2015 30-Jun-2019 Comments Baseline information on climate risk related policies for CARICOM countries to be provided as part of reporting from CCRIF SPC to the WB after effectiveness. PHINDIRITBL  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 -- -- -- Y Date 30-Jun-2015 -- 01-Oct-2015 30-Jun-2019 Comments Baseline information on climate risk related policies for CARICOM countries to be provided as part of reporting from CCRIF SPC to the WB after effectiveness. Overall Comments Data on Financial Performance 10/9/2015 Page 7 of 9 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Central America & Caribbean Catastrophe Risk Insurance Project (P149670) Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed Disbursed Not P149670 TF-A0564 USD 19.50 19.50 0.00 0.00 19.50 0% Effective Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date Not P149670 TF-A0564 30-Jun-2015 -- -- 30-Jun-2019 30-Jun-2019 Effective Cumulative Disbursements Restructuring History There has been no restructuring to date. Related Project(s) There are no related projects. 10/9/2015 Page 8 of 9 Public Disclosure Copy Public Disclosure Copy The World Bank Implementation Status & Results Report Central America & Caribbean Catastrophe Risk Insurance Project (P149670) 10/9/2015 Page 9 of 9 Public Disclosure Copy