Jamaica catastrophe bonds and the Hurricane Melissa payout
Jamaica bought hurricane cover through World Bank catastrophe bonds and a Caribbean risk pool. The 2021 bond paid nothing; the 2024 bond paid its full US$150 million after Hurricane Melissa in 2025.
Payouts as announced by the World Bank and CCRIF; the damage figure is an estimate reported by Global Finance.
Status As of November 2025: the 2024 bond paid in full and CCRIF paid US$91.9 million after Hurricane Melissa; the sources reviewed report no ruling or inquiry.
- Government of Jamaica — Received the US$150 million bond payout and CCRIF payouts totalling US$91.9 million after Melissa. World Bank
- Catastrophe-bond investors — Earned about 20% in 2023 and about 15% in 2024; the Swiss Re global index returned 11.40% for 2025. Insurance Journal
- Investors in the 2024 Jamaica bond — The bond paid out 100% of its US$150 million after Melissa. World Bank
- United States, United Kingdom and German governments — Paid the premium on the 2021 bond, which did not pay out in 2021 or 2022. Carrier Management
- Jamaica — Melissa damage estimated at US$8.8 billion, 41% of 2024 GDP. Global Finance
- Jamaica after Hurricane Beryl (2024) — The bond did not pay, despite the devastation the Bretton Woods Project described. Bretton Woods Project
What happened
In 2021 Jamaica issued a US$185 million catastrophe bond through the World Bank. According to a December 2022 Bloomberg report carried by Carrier Management, the United States, the United Kingdom and Germany paid the premium on that bond, and the World Bank had by then issued about US$2.6 billion in such bonds since 2014. The Bretton Woods Project reported that the bond did not pay out in the 2021 and 2022 hurricane seasons.
In July 2024 Artemis reported, citing the bond's calculation agent Plenum, that Hurricane Beryl was not expected to trigger a loss on the Jamaica bond, because the pressure threshold was not crossed in any of the sub-areas the storm passed through. In October 2024 the Bretton Woods Project reported that the World Bank-brokered bond had failed to pay despite the devastation caused by Beryl. It quoted the V20 group of vulnerable countries as saying the bond's conditions were difficult and specific, and Eurodad as saying such innovations were ineffective.
In April 2024 a new US$150 million bond was issued (IBRD CAR Jamaica 2024). Artemis's deal directory records a risk margin of 7%, an expected loss of 1.5%, a trigger probability of 2.34% and a maturity of December 2027. Insurance Journal reported in August 2024 that investors in catastrophe bonds had earned about 20% in 2023 and about 15% in 2024, and that the new Jamaica bond was 60% more expensive per unit of cover than the 2021 bond. It also reported that a V20 report author had described the arrangement as a one-way street for sovereign issuers.
Hurricane Melissa struck Jamaica in October 2025. On 7 November 2025 the World Bank announced that Melissa had triggered a 100% payout of the US$150 million bond, with AIR Worldwide as calculation agent. On 6 November 2025 CCRIF, the Caribbean risk pool, announced a second payout to Jamaica of US$21.1 million, following a first payout of US$70.8 million, a total of US$91.9 million. CCRIF said it had made 82 payouts totalling US$483 million since 2007.
Global Finance, citing the World Bank and the Inter-American Development Bank, reported damage from Melissa of US$8.8 billion, equal to 41% of Jamaica's 2024 GDP. Artemis reported that the Swiss Re global catastrophe bond index returned 11.40% for 2025, having fallen below zero in January with the Los Angeles wildfires and ending the year positive despite the Melissa loss.
- 2014World Bank begins issuing catastrophe bonds (about US$2.6bn by December 2022)
- 2021US$185m Jamaica bond issued; premium paid by the US, UK and Germany
- 20222021 bond reported as not having paid in the 2021 and 2022 hurricane seasons
- 2024New US$150m bond (April); Hurricane Beryl does not trigger it (July); Bretton Woods Project criticism (October)
- 2025Hurricane Melissa (October); CCRIF payouts (6 November); full US$150m bond payout announced (7 November)
- 2026Swiss Re global cat bond index reported at 11.40% return for 2025
What was said
“Hurricane Melissa Triggers 100% Payout of 150 Million (USD) World Bank Catastrophe Bond for Jamaica”
“Jamaica's World Bank-brokered catastrophe bond fails to pay despite devastation of Hurricane Beryl”
Where accounts differ
Each party's account, side by side, with its source. The record does not settle these points; it shows them.
Reported that Melissa triggered a 100% payout of the US$150 million bond.
World BankAnnounced a second payout of US$21.1 million, after US$70.8 million, following Melissa.
CCRIFReported that the 2021 bond did not pay in 2021 and 2022 or after Beryl in 2024; it cited the V20 as calling the conditions difficult and specific and Eurodad as calling the innovations ineffective.
Bretton Woods ProjectReported that investors earned about 20% in 2023 and about 15% in 2024, that the 2024 bond cost 60% more per unit of cover than the 2021 bond, and that a V20 report author called the arrangement a one-way street.
Insurance JournalA World Bank official said in 2022 that more donor premium support was hoped for; the Bank said some governments find the premium hard to pay.
Carrier ManagementNo statement is in the sources reviewed.
How it looked
Shown
- The World Bank presented its catastrophe bonds as fast, transparent financial protection.World Bank
- A full payout of the US$150 million bond within days of Hurricane Melissa.World Bank · World Bank
- A second CCRIF payout of US$21.1 million to Jamaica after Melissa.CCRIF · CCRIF
Recorded
- The 2021 bond did not pay in the 2021 and 2022 hurricane seasons.
- Hurricane Beryl (2024) did not trigger the Jamaica bond.
- The 2021 bond premium was paid by the United States, the United Kingdom and Germany.
- Melissa triggered a 100% payout of the US$150 million bond and CCRIF payments totalling US$91.9 million.
- Damage from Melissa was estimated at US$8.8 billion, 41% of 2024 GDP.
- Investors earned about 20% in 2023 and about 15% in 2024; the 2024 bond cost 60% more per unit of cover than the 2021 bond.
Who gained
Reached nature or the ground
Gained elsewhere
Responses on record
- world-bank (7 November 2025): Announced that Melissa triggered a 100% payout of the US$150 million bond, with AIR Worldwide as calculation agent. · World Bank
- ccrif (6 November 2025): Announced a second payout of US$21.1 million to Jamaica after Melissa, and said it had made 82 payouts totalling US$483 million since 2007. · CCRIF
- world-bank (December 2022): A World Bank official said in 2022 that more donor premium support was hoped for, and the Bank said some governments find the premium hard to pay. · Carrier Management
In court and with insurers
Lawsuits and rulings
Insurers
- 2025Paid$150m US$150 million, 100% payoutIBRD catastrophe bond (IBRD CAR Jamaica 2024), investors → Government of JamaicaStated reason: Hurricane Melissa met the bond's trigger.
The World Bank announced a full payout of the US$150 million bond on 7 November 2025. World Bank
- 2025Paid$91.9m US$70.8 million plus US$21.1 millionCCRIF → Government of Jamaica
CCRIF announced two payouts after Melissa; the second was US$21.1 million, announced on 6 November 2025. CCRIF
- 2022No policy foundWorld Bank catastrophe bond (2021), investors → Government of JamaicaStated reason: No payout in the 2021 and 2022 hurricane seasons.
A US$185 million bond whose premium was paid by the United States, United Kingdom and Germany; reported as not having paid in 2021 or 2022. Bretton Woods Project
- 2024No policy foundIBRD catastrophe bond (IBRD CAR Jamaica 2024), investors → Government of JamaicaStated reason: Hurricane Beryl did not cross the pressure threshold in any of the sub-areas it passed through.
Artemis reported that Beryl was not expected to trigger a loss on the bond. Artemis
What nature saw
Nature's report opens this page. Below: further outcomes measured on the ground.
What we don't know
Nature
- Not measured Harm to nature: No independent ecological evaluation is on record.
Court
- None on record No court case on record.
Insurers
Accounts
Record
- None on record The premium Jamaica paid for the 2024 bond: the sources reviewed give the risk margin (7%) but no premium amount.
- Insufficient Reported but not independently verified: a Moody's assessment, seen only in a reports of a Global Reinsurance article, said about 20% of Jamaican homes were insured and about 95% of those were underinsured.
- Unclear Whether the 2021 bond's payout conditions were close to being met in 2021, 2022 or 2024: the sources reviewed do not give the margins.
Did the harm stop?
No activity that harmed nature is recorded in this case; it concerns insurance payouts for hurricane losses.
Who paid?
The United States, United Kingdom and Germany paid the premium on the 2021 bond, which paid nothing. Investors in the 2024 bond bore its US$150 million payout. The sources reviewed do not say who paid the premium on the 2024 bond.
Sources
Press and investigations
- Hurricane Melissa devastation saddles Jamaica with multi-billion dollar billGlobal Finance · 2025-11
- IBRD CAR Jamaica 2024Artemis Deal Directory · 2024-04
- Jamaica 2021 catastrophe bond premium and World Bank issuance (Bloomberg report via Carrier Management)Carrier Management · 2022-12-07
- The Huge Profits Investors Have Made on Catastrophe Bonds Are Raising EyebrowsInsurance Journal · 2024-08-19
- Swiss Re global cat bond performance index returns 11.40% for 2025Artemis · 2026-01
- Moody's warns Jamaica faces vast uninsured losses from Hurricane MelissaGlobal Reinsurance ·
Communities and civil society
- Jamaica's World Bank-brokered catastrophe bond fails to pay despite devastation of Hurricane BerylBretton Woods Project · 2024-10
International bodies
- CCRIF announces 2nd payout to Jamaica following Hurricane MelissaCCRIF · 2025-11-06
Connected cases
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- World Bank (International organisation) — here: Issuer and arranger of the catastrophe bonds; there: Lender of the US$600m loan
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