Caribbean’s parametric cat fund CCRIF SPC explores cover expansion
The CCRIF SPC (Caribbean Catastrophe Risk Insurance Facility Segregated Portfolio Company) is exploring ways to scale up the cover it provides with regards to reach and products.
CCRIF SPC claims to be the world’s first regional fund utilising parametric insurance, giving member governments the opportunity to purchase earthquake, hurricane and excess rainfall catastrophe coverage with lowest-possible pricing.
The fund has been providing parametric catastrophe insurance coverage since 2007 for hurricanes and earthquakes and – since 2013 – for excess rainfall in the Caribbean, extending into Central America in 2015. Payouts up to December 2017 have amounted to approximately $130.5 million, all settled within 14 days of the hazard event.
Now the facility is exploring scaling up to better serve the countries in the region. CCRIF CEO Isaac Anthony said: “Charting a course to 2030 is even more an urgent requirement as the impacts of climate change are increasingly affecting CCRIF’s Caribbean and Central American member countries”.
The scaling up of CCRIF could include providing increased coverage for existing members, adding new members to CCRIF – in both the Caribbean and Central America and maybe even beyond. CCRIF could also introduce new products such as a drought product as well as provide coverage for the agriculture and fisheries sectors and public utilities (e.g. water and wastewater; energy, including renewables; and telecommunications) and possibly other economic industries such as tourism.
CCRIF chairman Milo Pearson added that even following CCRIF’s payouts of $55 million to 9-member governments after tropical cyclones Maria and Irma, CCRIF remains financially solvent with its long-term sustainability intact.
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