Project summary
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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
- 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