The mechanics matter right here. Jamaica’s bond makes use of a parametric, per-occurrence design that references central stress and storm location inside a grid across the island, with AIR Worldwide appearing as calculation agent utilizing U.S. Nationwide Hurricane Heart information. That structure quickens funding at the price of basis-risk trade-offs. A 12 months earlier, Hurricane Beryl struck Jamaica with out triggering the bond, as stress thresholds within the related grid cells weren’t breached—whilst the federal government declared a catastrophe. Melissa, against this, cleared the hurdles decisively.
