World Bank Confirms $150 Million Disaster Payout to Jamaica After Melissa

Jamaica is getting a financial lifeline as it recovers from Hurricane Melissa’s crippling destruction. The World Bank confirmed that Jamaica will receive a full $150 million USD payout under its catastrophe bond, money that will go directly toward recovery and rebuilding efforts.

But while the payout marks a historic first for the region, it only scratches the surface of what’s needed. Prime Minister Andrew Holness revealed earlier in the week that preliminary estimates put the damages and losses between six and seven billion U.S. dollars, nearly a third of Jamaica’s annual GDP.

In a matter of hours, the Category 5 storm wiped out years of progress, thousands of homes, and crippled the island’s economy.

At least 32 people lost their lives, thousands were left homeless, and entire communities remain cut off. The UN estimates that 36,000 people urgently need food assistance, while roads and critical infrastructure remain impassable in rural parishes.

This is the first time Jamaica’s 2024 World Bank catastrophe bond has been triggered in full. The payout was based on pre-agreed “parametric triggers” linked to Melissa’s central pressure and path, verified by the National Hurricane Center and AIR Worldwide Corporation.

Jorge Familiar, World Bank Vice President and Treasurer, said, “The payout underscores the role of catastrophe bonds in effective risk management strategies.” He added that Jamaica’s approach “serves as a model for countries seeking to strengthen their financial resilience.”

The disaster reflects a harsh truth for climate-vulnerable nations: even well-designed financial tools can’t match the scale of climate destruction.

As the World Bank mobilises emergency finance and reconstruction support, Vice President Susana Cordeiro Guerra said the country’s preparedness will allow Jamaica to “move swiftly from recovery to reconstruction and use this moment not just to rebuild, but to leapfrog toward more resilient infrastructure.”