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From our correspondent
Roseau, Dominica – November 05 2026 – A new financial protection arrangement aimed at helping Commonwealth nations withstand the economic consequences of natural disasters is moving closer to development, following the completion of a feasibility assessment by the Sustainable Markets Initiative (SMI). The proposed arrangement, called “Commonwealth Mutual,” was brought before an international gathering of leaders during the 2026 Commonwealth Heads of Government Meeting (CHOGM) in Antigua and Barbuda on November 5, where representatives from 42 governments attended a jointly hosted forum.
The initiative seeks to establish a system through which participating countries could combine their exposure to natural hazards and access insurance protection through a shared reinsurance arrangement. The SMI, established by King Charles III in 2020 while he was Prince of Wales, indicated that work is now underway with Commonwealth governments to prepare a detailed business proposal outlining the financial requirements and operational framework for the scheme. Potential coverage would include hurricanes, cyclones, flooding, drought, unusually heavy rainfall and earthquakes.
In conducting the assessment, the SMI consulted a range of industry stakeholders, including insurance companies, reinsurers, brokers, financial investors and experts in disaster-risk modelling. Their involvement helped examine whether collective risk-sharing could make insurance more accessible and reduce the financial shortfall governments face when disaster losses exceed available coverage. The proposed approach is particularly relevant to Small Island Developing States and African nations, which often encounter significant difficulties obtaining sufficient protection at manageable costs.
The SMI reported that the findings support the establishment of a reinsurance facility owned by participating governments. Rather than replacing existing regional arrangements, Commonwealth Mutual would operate alongside institutions such as the Caribbean Catastrophe Risk Insurance Facility, the African Risk Capacity and the Pacific Catastrophe Risk Insurance Company. Its proposed responsibilities would include distributing disaster risks across member countries, facilitating quicker access to funds following emergencies and improving the terms on which governments obtain international reinsurance. It could also help countries secure financing before disasters occur, reducing their dependence on emergency borrowing and external assistance afterwards.
Beyond insurance coverage, the proposed facility is expected to create opportunities for closer cooperation between governments and private-sector institutions, while strengthening national approaches to climate adaptation and disaster preparedness. SMI Chief Executive Officer Jennifer Jordan-Saifi said the concept offered Commonwealth nations an opportunity to transform their common exposure to climate threats into a coordinated system of financial resilience. She also highlighted its potential to lessen reliance on relief assistance after disasters and encourage sustainable development within the insurance sector.
Conduit Re Chief Executive Officer Neil Eckert described the assessment as an important indication that the proposed arrangement could be implemented. He noted that private-sector stakeholders, including insurers, brokers, regulators and capital providers, had demonstrated their willingness to participate in efforts to address the insurance protection gap across the Commonwealth. Eckert said a stronger insurance framework could help protect public finances, commercial activity, people’s livelihoods and lives by ensuring that financial support is delivered promptly after major disasters.
He further argued that the combined economic reach and geographical diversity of Commonwealth nations could give the proposed facility greater purchasing power, potentially allowing participating governments to obtain levels of insurance protection that would be difficult to negotiate individually. The SMI and its partners are now seeking further discussions with member governments as they prepare the next stage of the project, with the broader objective of creating a collective mechanism that offers more dependable financial safeguards against natural disasters.
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