Jamaica's $24 Billion Hurricane Payout: How The Catastrophe Bond Actually Works

Nine millibars. That's how close Jamaica came to getting a $150 million payout from Hurricane Beryl. Instead, we waited. Then Hurricane Melissa slammed into Jamaica with 892 millibar pressure, the joint strongest hurricane on record in 90 years, and triggered the catastrophe bond. Dr. Matthew Preston and Dr. Thaon Simms sit down with economist Keenan Falconer to break down Jamaica's disaster financing framework, how the $24 billion payout actually works, and why this insurance just saved the country from fiscal catastrophe. From multi-layered risk financing to which sectors will bounce back fastest, this is the economic reality check every Jamaican investor needs to hear.

Chapters:
00:00 Introduction: Nine Millibars from Disaster
00:35 Meet Keenan Falconer: From School Challenge Quiz to Economic Policy
03:07 The Discipline Behind Success: Work Ethic and Productivity
09:23 Pomodoro Techniques and Task Completion Philosophy
12:09 School Challenge Quiz Glory: The 2013 Championship Story
16:03 Current Role in Jamaica's Private Sector
17:23 Hurricane Melissa: The Catastrophe Bond Explained
22:27 What Makes the Cat Bond Different from Regular Insurance
25:11 How Parametric Insurance Actually Works
28:20 The Multi-Layered Disaster Financing Framework
32:37 Relief, Recovery, and Reconstruction: Three Phases Explained
37:09 Why Inflation Will Rise and Interest Rates May Follow
42:58 Renewing the Cat Bond: What Happens Next
48:10 Better to Have Insurance and Not Need It
50:15 What If Beryl Had Triggered the Bond?
52:20 The Fiscal Impact Without Insurance Coverage
57:20 Which Sectors Will Recover Fastest
1:02:32 Message to International Investors: Why Jamaica Still Makes Sense
1:05:08 Building Back Better: Resilient Infrastructure for 2050
1:10:30 Investment Approach: Loss Minimizing Over Profit Maximizing
1:13:15 Positive Outlook: Jamaica's Resilience Through Crisis

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❓ Which sector do you think will recover fastest from Hurricane Melissa? Drop your predictions in the comments below!

⚠️ Disclaimer: The opinions expressed in this podcast are solely those of the hosts and do not constitute financial advice. We may own shares in any of the companies discussed on this podcast. Please consult a financial advisor before making any investment decisions