Pioneering Public-Private Partnerships
Since the early 1980s, there has been a three-fold increase in the number of natural catastrophes. Through the development of catastrophe bonds and other reinsurance strategies, Guy Carpenter helps governments prepare for these risks and, in the event of a disaster, helps citizens rebuild and get back on their feet.
In 2006, Guy Carpenter assisted Mexico’s FONDEN, its natural disasters fund, in placing a catastrophe bond, which helped the government recover nearly half a billion dollars to rebuild and provide low-income housing to citizens after a natural disaster. In early 2017, with Guy Carpenter’s help, FEMA became the first U.S. federal agency to purchase private reinsurance. Months after this landmark policy was placed, Hurricane Harvey struck Houston and a full payout of a billion dollars was triggered within weeks of the hurricane coming ashore. It provided immediate funding to pay claims to flood-insured survivors.