For the past decade, Jamaica has been building layers of financial protection in the event of a natural disaster. Now, after Hurricane Melissa tore through the country, destroying homes, roads and essential infrastructure, the country's strategy might pay off — and provide a model for climate-vulnerable nations elsewhere.

Last year, the country issued $150 million US in a catastrophe or “cat” bond — triggered in case of certain parameters related to how strong a hurricane is and where it passes through.

“They are linked to t he central pressure of the hurricane when it makes landfall,” said Florian Steiger, CEO of Icosa Investments, a Swiss firm that focuses on catastrophe bonds. A third party needs to verify the trigger, but there’s no question in this case the necessary threshold has

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