Another Sandy could hit Caribbean even harder

Urbanisation and inadequate insurance coverage for rainfall damage could see the Caribbean hit even harder if another storm the size of Sandy emerges. That is the view of Issac Anthony, the newly appointed fulltime chief executive of the Caribbean Catastrophe Risk Insurance Facility (CCRIF).

According to Anthony, cat exposure has increased in the region due to an increase in infrastructure and population in vulnerable areas, which are not currently protected by adequate coverage.

“What we have learned from Sandy is that the Caribbean remains highly vulnerable to tropical cyclones,” said Anthony.

Sandy hit three areas in the Caribbean with the Jamaican agricultural sector experiencing losses of over $11 million.

“These comparatively small events – I say small because Sandy had an estimated return period of six years in Jamaica while in the Bahamas it was a once in two year loss event – can have a significant impact on economy, infrastructure population and environment,” said Anthony.

Sandy, which according to Anthony should not have caused as much damage as it did, produced very little wind, with most damage being caused by water.

“These events can bring extreme rainfall which is not covered in our current products,” he said. “This draws attention to the need for these products.”

CCRIF has been working since 2008 to develop an excess rainfall product which will address the losses associated with heavy rainfall and be available to all Caribbean countries. The product, in partnership with Swiss Re, will be available to all Caribbean countries as soon as possible.