The Pandemic Emergency Financing facility (PEF) is an innovative insurance-based mechanism which provides the needed surge funding to the world’s poorest countries to help prevent disease outbreaks from becoming pandemics, thereby saving lives and money, and protecting economies. PEF funding under the insurance window is provided by resources from the reinsurance market and the proceeds of catastrophe bonds issued by IBRD. The PEF also includes a cash window to complement the insurance window. Fund Website »
On April 16, 2020, the third party calculation agent for the PEF determined that the conditions for a payout from the insurance window for COVID-19, one of the viruses covered by the PEF insurance window, had been met. US$195.84 million in funding was provided from the reinsurance market and the proceeds of the catastrophe bonds. On April 24, 2020, US$63.34 million was received into the FIF from the reinsurance coverage, and on May 15, 2020 US$132.51 million was received into the FIF from the proceeds of the catastrophe bonds*.
*Amounts shown in USD rounded to millions