Under the Global Risk Modelling Alliance (GRMA) programme, the Superintendencia General de Seguros (SUGESE) has signed a financing contract with INGENIAR in joint venture with the Centre Internacional de Mètodes Numèrics a l’Enginyeria (CIMNE). This agreement represents an important step in supporting Costa Rica’s ongoing efforts to enhance its climate risk management capabilities. By complementing the country’s existing expertise and tools, this collaboration aims to provide advanced methodologies and strengthen resilience against climate-related hazards.
Due to its geographical location and volcanic topography, Costa Rica is highly vulnerable to the impacts of climate change. The country faces a range of climatic and geophysical hazards, including floods, droughts, earthquakes and landslides. Climate change projections indicate rising temperatures, more frequent and severe heatwaves, and shifting precipitation patterns that could lead to prolonged dry periods or extreme rainfall.
To enhance the resilience of vulnerable populations against extreme weather events, SUGESE, representing the Government of Costa Rica, has signed a grant agreement with INGENIAR and CIMNE for the development of risk analytics. These entities will act as implementing partners of the GRMA programme, a partnership combining public sector and re/insurance industry expertise to strengthen sovereign capabilities in risk assessment.
Following an expression of interest by the Ministry of Finance to the GRMA, Costa Rica has sought technical assistance to improve its risk modelling capabilities. In 2023 and 2024, the GRMA conducted two in-country multi-stakeholder workshops to prioritise risks and identify key gaps in risk data and modelling, as well as to explore avenues for advancing Climate and Disaster Risk Finance and Insurance (CDRFI).
The GRMA application submitted by Costa Rica highlighted the following key areas for support:
• Conducting a quantitative risk assessment of critical infrastructure, focusing on major hazards in the canton of Heredia.
• Climate and Disaster Risk Estimation for Road Infrastructure: Analyzing risks to National Route No. 2 (Pan-American Highway South) through a quantitative, probabilistic event-based flood risk assessment, complemented by risk analyses for earthquakes, landslides, and volcanic hazards.
• Flood and Drought Risk for micro, small & medium sized Farmers: Providing quantitative loss estimates for key agricultural products such as coffee, sugarcane, and livestock, to support the design of effective risk transfer mechanisms.
• Tourism Sector Risk Assessment (Fu-turismo): Evaluating the exposure and flood risks for micro, small & medium sized hotels and hostels, including a probabilistic estimation of current and future risks, as a foundation for developing financial resilience strategies in the tourism industry.
This collaboration underscores Costa Rica’s commitment to strengthening its technical capabilities in climate risk analytics. By fostering robust partnerships and investing in risk modelling, the country aims to build a more resilient future for its citizens and environment.
Nick Moody, Head of Private Sector at GRMA, said:
This agreement marks a pivotal moment in Costa Rica’s journey toward building resilience against climate and disaster risks. By supporting Costa Rica with advanced risk modelling tools and enhancing local expertise, we are empowering communities and institutions to better understand, anticipate, and mitigate the impacts of climate-related hazards. This collaboration demonstrates the strength of public-private partnerships in addressing climate change as a critical challenge.”
Tomás Soley Pérez, General Superintendent of Insurance, said:
The projects we will undertake in collaboration with GRMA and INGENIAR/CIMNE aim to advance probabilistic modeling of risks associated with climate change and natural disasters. These efforts will also focus on building the capacity to understand the impacts of these risks on our country and to develop efficient solutions. The outcomes of these projects will provide critical inputs for informed decision-making, helping to enhance the protection and resilience of communities, especially those most vulnerable to these challenges.
Omar-Dario Cardona, CEO of INGENIAR, said:
The integration of probabilistic risk assessment is key to driving informed investments in risk reduction and adaptation. The GRMA initiative in Costa Rica presents an exciting opportunity to adopt robust probabilistic methodologies for more effective decision-making in risk management. Through our participation and the use of our CAPRA ROBOT platform, we aim to strengthen Costa Rican institutions with the capabilities of applying advanced modeling techniques and tools. This collaboration not only strengthens financial protection but also provides vital support for impactful investments and actions in risk reduction.
About Sugese
The General Insurance Superintendency of Costa Rica (Sugese) is responsible for the authorization, regulation and supervision of natural and legal persons that carry out activities or contracts related to insurance, reinsurance and public offers in the insurance market. Its objective is to ensure the stability and effective functioning of the insurance market, as well as to provide complete information to policyholders. It is an autonomous organization attached to the Central Bank of Costa Rica.
About INGENIAR/CIMNE
INGENIAR, based in Bogotá, and the CIMNE Risk Resilience Group, based in Barcelona, are specialized in catastrophe modelling for planning and public policy purposes. They offer services in natural hazard assessment, disaster risk modelling and management, climate change adaptation, resilience, environmental management, financial protection, risk transfer, and specialized software development. With over 35 years of experience, both organizations are recognized international leaders in delivering robust, science-based solutions to governments’ complex challenges in risk management and climate change adaptation.
About GRMA
Initiated by the Insurance Development Forum (IDF) and V20 Group and hosted by the InsuResilience Solutions Fund (ISF) managed by Frankfurt School of Finance & Management, the GRMA is a unique public-private partnership offering countries open-source model and data support and capability development in risk analytics. The GRMA is funded by KfW on behalf of the German government.
Managed by Frankfurt School
GRMA hosted by ISF
