Reinsurance News

CCRIF completes $12.8m Bahamas payment after Dorian impact

27th September 2019 - Author: Charlie Wood

The Caribbean Catastrophe Risk Insurance Facility (CCRIF) has made two payments to the Bahamian government totalling $12.8 million due to the impact earlier this month of hurricane Dorian.

Source: Gonzalo Gaudenzi/AP Photo

Dorian made landfall in the Bahamas on September 1 and stalled over the Abaco Islands and Grand Bahama for almost two days, bringing winds of up to 185 mph and causing widespread devastation.

At present, estimates from RMS indicate that re/insurance industry losses in the Caribbean could be as much as $8.5 billion.

The Bahamas has 3 tropical cyclone policies and 3 excess rainfall policies with CCRIF – each covering a section or zone of the archipelago – North West, South East and Central.

CCRIF says it paid $11.5 million to the Bahamian government under tropical cyclone policy and a further $1.2 million from its excess rainfall policy for the North West zone.

“The Caribbean Catastrophe Risk Insurance Facility is worth it,” said Deputy Prime Minster of The Bahamas Peter Turnquest. “The hurricane insurance is going to give us roughly $10.9 million [the initial payout estimate] which is more or less in line with what we expected.”

Since its inception in 2007, CCRIF has made 40 payouts totalling about US$152 million to 13 of its 21 member governments.

The Bahamas was previously the recipient of a TA grant of $85,000 in 2012 for the construction of a new sea wall following the passage of Hurricane Sandy. Similar sized grants have previously been provided to Jamaica in 2012 and Dominica in 2016.

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