The Caribbean Catastrophe Risk Insurance Facility (CCRIF SPC) will be making payouts totaling over US$15 million to three Caribbean countries affected by Hurricane Irma earlier this week.
“The CCRIF board and team offer condolences for the loss of life and hope these funds will provide some assistance. We stand ready to support the Government and people of these CCRIF countries as they recover from the effects of this devastating hurricane,” said CCRIF chief executive officer, Isaac Anthony.
Payments totaling US$15.2 million
The CCRIF plans to pay US$6.7 million to Antigua and Barbuda, US$6.5 million to Anguilla and US$2.2 million to St. Kitts-Nevis.
The storm has been blamed for at least 10 deaths and millions of dollars in property damages as it made its way through the Lesser Antilles this week.
In the case of Barbuda, Prime Minister Gaston Browne has ordered an immediate evacuation of some 1,800 people on the island. The government has also announced a state of emergency.
“Nothing is functional in Barbuda,” Browne said, adding that he has given instructions that ‘every single soul must be taken out of Barbuda”.
The CCRIF is verifying the payout calculations and is in discussion with the three governments about arrangements for the transfer of these funds. The transfer will be completed within 14 days after the storm, as mandated by CCRIF’s operational guidelines.
“Anguilla and St. Kitts & Nevis also have Excess Rainfall (XSR) policies and CCRIF is assessing if these policies were triggered by the rains from Hurricane Irma, which may possibly result in a second payout under those policies. The assessment under the XSR policies will be determined in the next few days,” the CCRIF added.
Segregated portfolio company
The CCRIF SPC is a segregated portfolio company, owned, operated and registered in the Caribbean. It limits the financial impact of catastrophic hurricanes, earthquakes and excess rainfall in the Caribbean and, since 2015, Central American governments by quickly providing short-term liquidity when a parametric insurance policy is triggered.
Since its inception in 2007, the facility has made 22 payouts for hurricanes, earthquakes and excess rainfall to 10-member governments totaling approximately US$69 million.
It said the new payments will bring the total payouts to approximately US$85 million. Last year CCRIF made payouts totaling US$29 million to four countries after Hurricane Matthew.