CAYMAN ISLANDS / JAMAICA – Caribbean Catastrophe Risk Insurance Facility Segregated Portfolio Company (CCRIF SPC) has announced that it will make a second payout of US$21.1 million to the government of Jamaica following the passage of hurricane Melissa – due to the triggering of the government’s excess rainfall parametric insurance policy.
Previously, on October 31, CCRIF announced that Jamaica will receive a payout of US$70.8 million (J$11.4 billion) on the country’s tropical cyclone policy. The total payouts to Jamaica from CCRIF amount to US$91.9 million (J$14.8 billion) following the devastation caused by hurricane Melissa.
On November 3rd CCRIF provided the government with a portion of the tropical cyclone policy payout – US$8 million – to provide immediate access to quick liquidity (cash). The remaining US$62.8 million will be paid by November 13th – in keeping with CCRIF’s key value proposition of making payouts within 14 days of an event. The excess rainfall policy payout will also be made within 14 days, following final model verification. Excess rainfall assessments typically take a few days longer than tropical cyclone evaluations due to the complexity of rainfall distribution and localised impacts.
CCRIF’s parametric insurance policies are a key component of Jamaica’s comprehensive disaster risk financing strategy. Payouts from CCRIF provide its members with immediate access to liquidity to support vulnerable populations, repair critical infrastructure, stabilise public services such as water, and reduce the country’s economic exposure, safeguarding debt and fiscal sustainability targets and overall development gains.
Jamaica currently has coverage from CCRIF for tropical cyclone, excess rainfall and earthquake. CCRIF’s parametric insurance policies are designed to respond to the intensity of a hazard event, considering the assets exposed, and the modelled losses based on pre-defined models. The tropical cyclone policy is based on modelled losses from wind and storm surge, and the excess rainfall policy is based on the volume and distribution of rainfall.
Prior to these two payouts for hurricane Melissa, Jamaica received three other payouts in previous years on its tropical cyclone and excess rainfall policies for Tropical Cyclones Beryl, Eta and Zeta.
Since its inception in 2007, CCRIF has made 82 payouts totalling US$483 million.
CCRIF CEO, Isaac Anthony, plans to visit Jamaica to meet with senior officials to discuss how CCRIF can provide further assistance for the country’s recovery efforts and how it can support the government in further enhancing its financial protection strategy.
