Leveraging Catastrophe Bonds: As a Mechanism for Resilient Infrastructure Project Finance

Often the most cost-effective solutions to disaster risk are the ones available to communities prior to a disaster to protect against a loss occurring in the first place. Yet cities around the world are struggling to fund even basic infrastructure projects, let alone more complex investments in resilient systems. This paper offers a new approach for systematically linking catastrophe bonds and conventional project finance to support large-scale resilience projects. This report outlines why catastrophe models are key to measuring resilience, how to reshape catastrophe bonds as resilience bonds, and how governments can leverage insurance for resilience.