Project summary

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Complex project

Complex project

  • Severe impact to the early construction of the Upper Trishuli-1 Hydropower Project following a 7.8 magnitude earthquake in Nepal in 2015
  • Traditional insurance markets unable to provide sufficient earthquake insurance
  • Project sponsors and financiers needed to explore alternatives to secure the project financing

Solution

Solution

  • Parametric insurance structure
  • Trigger: Shaking intensity at the project site, based on United States Geological Survey (USGS) shakemaps
  • Coverage:
    • 5 years (based on the construction period)
    • Flexibility in adjusting the insured values year-on-year, to reflect changes in the construction process

Source: Swiss Re Corporate Solutions