CCRIF Member States Buy $1.2 Billion in Parametric Insurance Coverage
CCRIF SPC member governments have renewed their paramedical insurance coverage for Tropical Cyclones, Excessive Rainfall and Earthquakes, and Fisheries for the 2022/23 insurance year.
With this renewal, Caribbean and Central American governments expanded their risk pool by 10% year-over-year, renewing $1.2 billion in coverage, which included earthquake policies. land, tropical cyclones and excessive rainfall.
According to the CCRIF, 13 member governments have increased their coverage compared to the 2021/22 insurance year.
“The renewal and demand for increased coverage by members illustrates that countries continue to recognize the critical importance of financially protecting their economies against natural disasters, particularly in the context of the frequency and intensity natural hazards,” said CCRIF.
Additional grants have been made available to the CCRIF by the World Bank, in partnership with the European Union (EU) through its Caribbean Regional Resilience Building Facility (CRRB) managed by the Global Facility for disaster prevention and recovery, to support eligible Caribbean countries.
The World Bank, together with the EU, Germany (through the KfW Development Bank and the Federal Ministry for Economic Cooperation and Development (BMZ)) and the United States Treasury (UST ), through the Central America and Caribbean Catastrophe Risk Insurance Program, supported Central American members.
According to the announcement, for this insurance year, CCRIF has offered member countries the option of reducing the cost of their insurance premiums or increasing coverage or both by approximately 11% for policies against tropical cyclones and 24% for policies against excessive precipitation for the Caribbean and 15 to 30% for Central America.
“In addition to this support, CCRIF has also offered discounts to its members as an incentive to increase coverage, including a discount to members on any increased coverage over the previous policy year for cyclone policies. tropics and earthquakes,” said CCRIF.
In addition, the World Bank provided premium support to pilot countries Grenada and Saint Lucia for a fourth year for their 2022/23 fisheries COAST policies.
CCRIF continues to expand its products and continues to work with the Caribbean Electric Utility Services Corporation (CARILEC) on the rollout of its electric utility product, the company added.
In the 2021/22 policy year, CCRIF made payouts to three members, $40 million to the government of Haiti after the August 2021 earthquake, its largest payout to date, and disbursements in Barbados after Tropical Cyclone Elsa and in Trinidad and Tobago after heavy rains. in August 2021.
Since 2007, when it was launched, CCRIF has made a total of 54 payments to 16 of its member governments, totaling approximately $245 million, with each payment made within 14 days of the event.