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: 3 | ARCHIVED on 17-Nov-2016 | ISR25108 | Implementing Agencies: CCRIF SPC Key Dates Key Project Dates Bank Approval Date:30-Jun-2015 Effectiveness Date:14-Oct-2015 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  Satisfactory Overall Implementation Progress (IP)  Satisfactory  Satisfactory Overall Risk Rating  Substantial  Substantial 11/17/2016 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 The Project was approved by the World Bank's Regional Vice President for Latin America and the Caribbean Region on June 30, 2015. The Grant Agreement with CCRIF Segregated Portfolio Company (CCRIF SPC) was signed on July 16, 2016 and became effective on October 15, 2015. Nicaragua as the first COSEFIN country to sign a Participation Agreement with CCRIF SPC (April 2015) has benefited from coverage for the seasons 2015/16 and 2016/17, acquiring tropical cyclone (hurricane) and earthquake coverage. CCRIF SPC made the first payout to the Government of Nicaragua for US$500,000 related with the magnitude 6.1 earthquake that occurred on June 9, 114 km (71 mi) NW of Managua. This is CCRIF SPC’s first payout to a Central American member country. The implementation of the Project is proceeding well, and within the expectations given the number of countries member of the Council of Ministers of Finance of Central America, Panama and the Dominican Republic (COSEFIN) that have joined CCRIF SPC. In moving ahead, the announcement made by donors regarding the financing of the participation fee to facilitate the entrance of countries to the initiative; and the availability of the excess rainfall product, which is a priority product for most of COSEFIN countries, are a major step forward in the expansion to Central America. The World Bank Task Team continues working with COSEFIN and CCRIF SPC CCRIF towards the advancement of the expansion. 11/17/2016 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) 11/17/2016 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) Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance  --  Moderate  Moderate Macroeconomic  --  Moderate  Moderate Sector Strategies and Policies  --  Low  Low Technical Design of Project or Program  --  Moderate  Moderate Institutional Capacity for Implementation and Sustainability  --  Substantial  Substantial Fiduciary  --  Moderate  Moderate Environment and Social  --  Low  Low Stakeholders  --  Substantial  Substantial Other  --  Moderate  Moderate Overall  --  Substantial  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 11/17/2016 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) Value Y Y Y Y Date 30-Jun-2015 29-Apr-2016 10-Nov-2016 30-Jun-2019 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 0.00 100.00 100.00 100.00 Date 30-Jun-2015 29-Apr-2016 10-Nov-2016 30-Jun-2019 Overall Comments Since the approval of the Project in June 2015, only one payout has been financed with Grant funding under the Project. A payout in an amount of US$500,000 was made to the Government of Nicaragua for the magnitude 6.1 earthquake that occurred on 9 June, 114 km (71 mi) NW of Managua. The payout was made by CCRIF SPC on June 23, 2016, well within one month of the occurrence of the event. In addition, since June, 2015 nine (9) payouts have been made to CARICOM member countries (using CCRIF SPC counterpart funding) within month of the occurrence of the event: Dominica, under its excess rainfall policy (US$2,400,000); Belize, under its excess rainfall policy (US$ 261,073); Barbados, under its tropical cyclone policy (US$975,000); Barbados, under its excess rainfall policy (US$753,277); Saint Lucia, under its excess rainfall policy (US $3,781,788); St. Vincent & the Grenadines, under the excess rainfall policy (US$ 285,349); Haiti, under its tropical cyclone policy (US $ 20,388,067) and Haiti under its excess Rainfall policy (US$ 3,020,676). 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 Y Y Y Date 30-Jun-2015 29-Apr-2016 10-Nov-2016 30-Jun-2019 Comments Nicaragua purchased earthquake coverage for the policy year 2015/16 (baseline) and for policy year 2016/17, selecting similar parameters. Compared to the baseline values, the 2016/17 policy provides a slight increase in insurance coverage of 0.39%. 11/17/2016 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  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 N -- Y Y Date 30-Jun-2015 29-Apr-2016 10-Nov-2016 30-Jun-2019 Comments For the Central America Segregated Portfolio reserves are sufficient to back up claims are larger than payouts arising from a series of catastrophic events having a modeled frequency of at least 1/200 years (this includes Grant funding for the Project). 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 0.00 0.00 3.00 Date 30-Jun-2015 29-Apr-2016 10-Nov-2016 30-Jun-2019 Comments The excess rainfall (XSR) risk model and policy was made available to COSEFIN countries for the 2016/17 policy period, starting on June 1, 2016. No policies have been issued for excess rainfall coverage to COSEFIN countries. 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 Y Y Y Date 30-Jun-2015 29-Apr-2016 10-Nov-2016 30-Jun-2019 Comments Nicaragua purchased tropical cyclone coverage for the policy year 2015/16 (baseline), and for policy year 2016/17. Nicaragua renewed its TC policy using new parameters. Compared to the baseline values, the 2016/17 policy provides an increase in insurance coverage of 11%. 11/17/2016 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  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 N -- Y Y Date 30-Jun-2015 29-Apr-2016 10-Nov-2016 30-Jun-2019 Comments For the Central America Segregated Portfolio reserves for policy year 2015/16 were sufficient to back up claims are larger than payouts arising from a series of catastrophic events having a modeled frequency of at least 1/200 years (this includes Grant funding for the Project). 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 0.00 11.00 4.00 Date 30-Jun-2015 29-Apr-2016 10-Nov-2016 30-Jun-2019 Comments Twelve CARICOM countries purchased excess rainfall coverage for the policy year 2015/16 (baseline), two countries did not renew coverage and one country purchased coverage for the first time for year 2016/17, resulting on eleven policy for the 2016/17 policy year (financed with counterpart funding). 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 Y Y Y Date 30-Jun-2015 29-Apr-2016 10-Nov-2016 30-Jun-2019 Comments Twelve CARICOM purchased tropical cyclone coverage for the policy year 2015/16 (baseline), all of which renewed the policies for year 2016/17. Compared to the baseline values, the 2016/17 policies provide an average increase in insurance coverage of 1.28% (financed with counterpart funding). Twelve CARICOM countries purchased excess rainfall coverage for the policy year 2015/16 (baseline), two countries did not renew coverage and one country purchased coverage for the first time for year 2016/17. Compared to the baseline values, the 2016/17 policies provide an average increase in insurance coverage of 7.22% (financed with counterpart funding). 11/17/2016 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) 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 Y Y Y Date 30-Jun-2015 29-Apr-2016 10-Nov-2016 30-Jun-2019 Overall Comments For the Caribbean EQ/TC Segregated Portfolio and Caribbean XSR Segregated Portfolio, reserves for policy year 2015/16 were sufficient to back up claims are larger than payouts arising from a series of catastrophic events having a modeled frequency of at least 1/200 years (financed with counterpart funding). 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 1.32 18.18 7% 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 30-Jun-2019 Cumulative Disbursements 11/17/2016 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) Restructuring History There has been no restructuring to date. Related Project(s) P161940-AF Central America & Caribbean Catastrophe Risk Insurance Project 11/17/2016 Page 9 of 9 Public Disclosure Copy