CITIES ACROSS THE UNITED STATES AND AROUND THE WORLD ARE FACING INCREASINGLY FREQUENT SEVERE WEATHER EVENTS.
Many local governments and public utilities are overexposed and underinsured for these risks. They are also coping with aging and failing infrastructure systems that increase the potential for catastrophic losses.
RE.bound is an innovative finance program designed by re:focus and launched in April 2015 in collaboration with Goldman Sachs, RMS, and Swiss Re with the generous support of the Rockefeller Foundation to help communities around the world better protect themselves against the physical and financial risks of disaster. The aim of the program is to create a new type of insurance product called a Resilience Bond that systematically links existing Catastrophe Bonds with traditional project finance to support the implementation of large-scale resilient infrastructure projects. Similar to a life insurance policy that includes a reduction in premiums for interventions that reduce overall risk, like quitting smoking or exercising regularly, a Resilience Bond applies the insurance mechanism of a Catastrophe Bond for a city or public utility, and generates savings in the form of a rebate that can apply to projects, like seawalls or flood barriers, that reduce economic losses from disasters.