CCRIF welcomes Guatemala to the facility as its third Central American member.
CCRIF SPC, a segregated portfolio company, owned, operated and registered in the Caribbean has welcomed the Government of Guatemala to the facility as its third Central American member.
Guatemala has purchased parametric insurance cover for excess rainfall for the 2019/20 policy year. CCRIF’s membership now stands at 22 countries – 19 from the Caribbean and three from Central America.
CCRIF, established in 2007, provides parametric insurance coverage for tropical cyclones, earthquakes and excess rainfall to limit the financial impact of these catastrophes by quickly providing financial liquidity when a policy is triggered.
The facility was originally established for Caribbean governments, but in 2015, CCRIF signed a memorandum of understanding with the Council of Ministers of Finance of Central America, Panama and the Dominican Republic (COSEFIN) to enable Central American countries to join the facility.
Nicaragua was the first Central American country to join and has been a member of CCRIF since 2015. In its first year, the Government received two payouts totalling US$1.6 million on its earthquake and tropical cyclone policies. Guatemala joins Nicaragua and Panama as CCRIF’s three Central American members.
CCRIF provides parametric insurance coverage to the two regions through different segregated portfolios or cells. It aggregates disaster risks within the two regions but keep the risks segregated across regions, achieving the kind of risk diversification and spreading within each zone that members are not able to attain on their own and reducing costs by sharing operational services between both regions.
CCRIF CEO Isaac Anthony said: “CCRIF was not designed to cover all losses on the ground, but rather to provide a quick injection of liquidity following a natural disaster for emergency relief and early recovery needs, thereby reducing post-disaster resource deficits and government budget volatility.”
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