The policy is combined with a 10-year plan for its implementation, which will take into account ‘fiscal space’ and other limitations, the government said in a statement.

Minister Nigel Clarke said that natural disasters have a fiscal cost, which can result in unplanned public expenditure, along with a reduction in budgetary revenues.

Though he noted that “we won’t be able to insulate ourselves completely”, natural disasters can “set small countries back for years”.

The announcement was made during Clarke’s keynote address at the Annual Sales Congress of the Caribbean Association of Insurance and Financial Advisors.

The policy will be developed with technical assistance from the country’s multilateral partners.

He said: “Today, and for the next 18 months, Jamaica is in a precautionary stand-by arrangement with the IMF.

“Within the context of this program with the fund, we have access to significant resources should we need them.

“As we move towards the end of this program relationship with the IMF with the commensurate stand-by line of credit that it offers, it is important that we consider measures that can moderate the fiscal impact of natural disasters.”

The minister added that Jamaica is subject to natural disasters and the incidences of these have been increased over time.

The Public Financial Management Policy for Natural Disaster Risk will consider Jamaica’s fiscal realities, natural disaster related fiscal exposure, as well as the pros and cons of various solutions available, the government said.

The announcement was made during Clarke’s keynote address at the Annual Sales Congress of the Caribbean Association of Insurance and Financial Advisors.

A 2017 study found that almost all Caribbean nations have developed IPSAS or are in the process of doing so.