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Jamaica Triggers Full Catastrophe Bond as Hurricane Melissa’s Costs Soar Beyond Safeguards

A record Category 5 landfall left billions in losses, exposing the limits of prearranged disaster finance.

Overview

  • The $150 million parametric catastrophe bond is set to pay out in full following Melissa’s trigger, with CCRIF coverage and contingency funds providing additional rapid liquidity.
  • Preliminary estimates put Jamaica’s losses near $7–8 billion, far exceeding the bond’s size and likely surpassing the country’s broader financial buffers.
  • Western parishes including St. Elizabeth, Westmoreland, and Trelawney saw catastrophic impacts, with Black River reporting about 90 percent of structures destroyed and widespread damage to roads and buildings.
  • Large areas remain without power, water, cell service, or passable roads, hampering assessments and driving concerns over dwindling food supplies.
  • Rapid attribution studies indicate human-driven warming made a storm like Melissa roughly four times more likely with about 11 percent stronger winds and 16 percent more rainfall, intensifying calls for increased adaptation finance and U.S. support.