World Bank Approves Loans for Climate-Related Disaster Insurance in the Balkans

3 March 2011: The World Bank has approved loans for US$5 million for Former Yugoslav Republic of Macedonia and US$5 million for the Republic of Serbia to help increase local access to financial protection from the losses caused by climate change and disasters.

The loans, which are part of the regional South East Europe and Caucasus (SEEC) Regional Catastrophe Risk Insurance Facility Project, aim to support SEEC countries' efforts to join Europa Re, a specialty catastrophe reinsurance company, by financing their membership contributions to the Facility. Europa Re, in turn, will facilitate the growth of catastrophe risk insurance markets in member countries. Through this arrangement, homeowners, farmers, private companies, and government agencies will be able to purchase dependable catastrophe insurance coverage and/or weather risk insurance contracts at competitive prices. [World Bank Press Release]