CCRIF SPC has disclosed that it made two payouts totalling $3.4 million to the governments of Antigua and Barbuda and the British Virgin Islands following Tropical Storm Philippe, which triggered the parametric insurance policies of these countries for Excess Rainfall.
Philippe made landfall on Antigua and Barbuda on October 2nd and passed near the British Virgin Islands (BVI) on October 4th, causing heavy rains and flooding in both countries.
CCRIF made a payout to Antigua and Barbuda of $2,880,424, with the BVI receiving $552,297. This was the BVI’s first payout from CCRIF, while the payout to the Government of Antigua and Barbuda was its third, having received payouts following Tropical Cyclone Irma in 2017 and an excess rainfall event in 2022.
CCRIF CEO, Isaac Anthony, commented, “Investment in CCRIF’s catastrophe risk insurance each year is an important part of their comprehensive disaster risk management strategies, as CCRIF payouts help to close the protection gap, reduce budget volatilities associated with exogenous shocks and allow governments to address the country’s most urgent needs.
“Whilst payouts are often used to address immediate needs after a disaster, governments can also implement activities to increase resilience against future hazard events, build back better, and enhance social protection systems to become more shock-responsive.”
According to CCRIF, these two payouts bring the company’s total since inception to $265 million. CCRIF explained it has now made 62 payouts to 17 of its 26 members.
As per the firm, throughout the years, CCRIF member governments have used payouts to address immediate needs post-disaster – from providing food, water, and medicines to the most vulnerable, to clearing roads and fixing bridges etc.
Payouts have also been used for repairing and improving critical infrastructure such as schools and water treatment plants and supporting sectors such as tourism and agriculture.
