CCRIF to pay $20m to Haiti following impact of Matthew

The Caribbean Catastrophe Risk Insurance Facility (CCRIF) has said it is prepared to make an estimated pay-out of $20 million to the Government of Haiti as a result of the passage of Hurricane Matthew.

The payment is a result of the hurricane reaching the sufficient magnitude required to trigger the full policy limit for Haiti’s tropical cyclone coverage.

Matthew made landfall in Haiti on October 4 as a Category 4 Hurricane, bringing intense rain, wind and surge waves, which caused mudslides and flooding.

Since 2007, CCRIF has made a total of 15 pay-outs to 10 member governments totalling $38.8 million, this most recent payment bringing the figure to approximately $58.8 million.

CCRIF’s parametric insurance products are insurance contracts that make payments based on the intensity of an event, based on hurricane wind speed, earthquake intensify or volume of rainfall.

The amount of loss is calculated in a pre-agreed model historically caused by these events.

Isaac Anthony, CEO of CCRIF, said: “The CCRIF Board and Team extend our condolences to Haiti on the loss of life and extend our support to the Government and people of Haiti as they recover from this disaster.

“We know that the Government welcomes this payment and is looking forward to beginning their recovery efforts."

Furthermore, Haiti has an excess rainfall policy in place, potentially entitling it to make an additional pay-out.