According to a release from the Danish Red Cross, the disaster relief agency has launched a catastrophe bond for volcano-related disasters to quickly get aid to those suffering after the eruption of 10 named volcanoes in Indonesia and six other countries.
The Danish Red Cross is launching the $ 3 million bond with the support of several financial firms and the catastrophe bond also enables quick relief to named volcanoes in Cameroon, Chile, Colombia, Ecuador, Guatemala, and Mexico.
Reuters states that the catastrophe bonds offer investors high yields, but do not pay out if a named catastrophe occurs and they typically cover areas prone to hurricanes and typhoons.
The Danish Red Cross has worked with insurance group Howden, with risk modeling by Mitiga Solutions and blockchain technology from Replexus and the initial investors include Plenum Investments, Schroder Investment Management, and Solidum Partners.
