A consortium led by K&M has been engaged to help Caribbean water and sanitation utilities recover from natural disasters. K&M’s consortium was engaged by IDB Invest to prepare a feasibility study to pave the way for a mutual designed for Caribbean water utilities to insure climate related risks (The Mutual).
Mr. Nils Janson, K&M’s managing director of policy and regulation, is leading the project. K&M has joined efforts with Alliant, one of the largest insurance brokerage firms in the United States.
The Mutual will help water and sanitation utilities in the Caribbean reduce their recovery time and costs after natural disasters and increase their resilience against them. The K&M team will structure a facility to provide urgent funds to restore the utilities’ services and financial instruments to mobilize other resources to support long-term reconstruction. The facility will provide parametric loss insurance that would be defined through risks to be reinsured, deductibles, and limits of covers. The team will also propose a feasible approach for setting up the Mutual.
K&M is also advising the World Bank on a project to improve the resilience of Caribbean island nations to natural disasters.