Costa Rica’s financial institutions come together to further develop their capabilities and application of climate and disaster risk analysis for financial and insurance solutions.
Six months after the last workshop under the implementation phase of the Global Risk Modelling Alliance (GRMA) programme in Costa Rica, an additional Capability Development Workshop led by the GRMA team and the Global Shield Secretariat took place in San José, from 21-25 September 2026. Hosted by the Superintendencia General de Seguros (SUGESE), the five-day programme brought together around 30 representatives from Costa Rican government agencies, insurers, regulators, and academia to strengthen Costa Rica’s capabilities in climate and disaster risk analysis, catastrophe modelling, disaster risk finance and insurance solutions, as well as insurance supervisors of Colombia and Peru.
The workshop built on the GRMA’s highly productive partnership with Costa Rica’s institutions. Over two years, risk models and data were developed for strategic highways, the tourism sector, agricultural crops and critical infrastructure. Just as importantly the programme supported the development of risk analysis capability using insurance principles. Representatives from the Central Bank of Costa Rica (BCCR), the National Emergency Commission (CNE), UCR-LANAMME and the Municipality of Heredia showcased how they are using their new capabilities and risk data to support infrastructure management and public-sector financial planning. Eight Latin American insurance companies also attended and discussed how this progress could be applied in their markets.
A key goal for this workshop was sharing the regional country experiences and insurance industry expertise in the application of risk information and catastrophe risk modelling. For this purpose, we were happy to welcome representatives from Peru and Colombia’s insurance supervisors, who had also expressed their interest in enhancing their capabilities in climate risk analytics and modelling. A crucial component of the workshop was delivery of technical training by experts from global companies Aon, AXA Climate, Convex Insurance, Marsh Re and RenaissanceRe, all members of the Insurance Development Forum (IDF), a founding partner of the GRMA.
The GRMA team brought its unique blend of private sector expertise from the IDF’s Risk Modelling Steering Group (RMSG) and public sector expertise from Frankfurt School of Finance and Management, where the GRMA programme is hosted. Technical deep-dives and practical training exercises stimulated discussion between insurers and supervisors on how risk information can improve risk management and strengthen market resilience.
The week provided full coverage from risk models to their application in the insurance sector and CDRFI solutions, where participants learned about:
- The basics of data and risk models, the importance of open data and data standards, together with some examples of Benefit-Cost Analysis, delivered by the GRMA team.
- Core elements of catastrophe risk modelling – its benefits over historical analysis, the inclusion of climate variability (very relevant in the current strong El Niño phase) and climate scenarios in forward looking analysis, delivered by RenaissanceRe.
- The value of layered risk financing strategies and the design of those strategies, delivered by the Global Shield team and Axa Climate. In addition, participants put their learning into practice through the interactive Hotel Resilience serious game, led by the Global Shield; they became district managers trying to establish their financial protection strategies to adapt to climate change and increasing hazards.
- Parametric insurance was a popular topic. Aon provided a session on how a product can be designed, including index selection and underlying data requirements. This was illustrated through practical examples from across the region and a parametric design exercise.
- Innovative parametric approaches being explored in Costa Rica’s energy sector, with a case study on insurance solutions for hydroelectric systems from the Instituto Costarricense de Electricidad (ICE) developed through the IDRIMA programme (an initiative of Agence Française de Développement and the Insurance Development Forum).
- Adaptive social protection, through an example from the Dominican Republic. This session, delivered by Marsh Re, demonstrated the role of insurance solutions in supporting vulnerable communities and strengthening financial resilience.
- Climate stress testing, with Convex Insurance giving insights into current regulation and good practice in scenario analysis, including an example of the UK PRA DyGIST live stress testing scenario, and considerations for designing effective scenarios.
It was a comprehensive week with many important outcomes. We saw how participants improved their understanding of available climate and disaster risk datasets, strengthened their knowledge of catastrophe modelling techniques, and gained practical experience in applying risk analytics to insurance and supervisory activities. However, it did not stop there – they also increased their familiarity with disaster risk finance instruments, including layered financing approaches and parametric insurance solutions.
Most importantly, the event brought together stakeholders from multiple sectors in Costa Rica, and multiple countries creating new shared understanding and experiences. It was a platform to explore new opportunities for collaboration including the insurance sector and international development programmes. As Costa Rica continues to strengthen its resilience to climate and disaster risks, the workshop represents an important milestone in building the technical capabilities, partnerships and analytical foundations needed to support informed decision-making and long-term resilience.
*The GRMA is a public-good service established as a joint initiative of the V20 Group of Ministers of Finance of the Climate Vulnerable Forum and the Insurance Development Forum (IDF), following an agreement reached at COP26 in Glasgow in 2021. It is funded by the Federal Republic of Germany – represented by the Federal Ministry for Economic
