Eight members of the Caribbean Catastrophe Risk Insurance Facility (CCRIF) have become the first countries to purchase an excess rainfall insurance coverage for the 2014/2015 policy year.
The product, developed by CCRIF and Swiss Re, is aimed primarily at extreme high rainfall events of short duration, whether they happen during a tropical cyclone or not.
The excess rainfall product uses a parametric trigger and estimates the impacts of heavy rain using satellite rainfall data from the Tropical Rainfall Measurement Mission (TRMM) and exposure from CCRIF’s risk estimation database.
Isaac Anthony, CCRIF chief executive officer, said: “The new excess rainfall product has been eagerly awaited by Caribbean governments as we all realise that considerable damage in the region is caused by rainfall and flooding. This product complements CCRIF’s hurricane coverage which determines losses based on wind and storm surge. We commend our eight members for taking the initiative and purchasing this ground-breaking product and hope that other countries in the region will follow.”
Martyn Parker, chairman, global partnerships at Swiss Re, said: “Securing excess rainfall insurance protection demonstrates that Caribbean countries are taking a proactive approach to manage the contingent risks posed by climate change. Swiss Re is proud to support them in their efforts to ensure fiscal stability after a disaster.”
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CCRIF, Caribbean, Swiss Re, Isaac Anthony,