The Caribbean Catastrophe Risk Insurance Facility (CCRIF) is due to make a payout of $10.7 million to the Government of Nicaragua following the aftermath of Tropical Cyclone Eta.
CCRIF has made an advance payment of $3.7 million to the Government of Nicaragua, with the remainder to be paid by November 19, following verification of the final model results.
Both the country’s tropical cyclone and excess rainfall parametric insurance policies were triggered due to Eta.
The cyclone was the 29th and most powerful tropical cyclone of the 2020 Atlantic Hurricane Season and made landfall in Nicaragua as a category 4 hurricane, bringing catastrophic winds, storm surge and rainfall.
Since its inception in 2007, CCRIF has made a total of 47 payouts to 14 of its member governments, totalling approximately $174 million.
CCRIF’s payouts provide quick liquidity to governments immediately following a natural disaster, allowing them to address their most immediate needs.
Nicaragua’s Minister of Finance and Public Credit, Iván Acosta said: “We want to extend our recognition for the excellent work by the team of CCRIF SPC, for their effectiveness in their mission to serve the peoples of Central America and the Caribbean in their moments of greatest need, such as when they face a climatic or catastrophic event.”
This is Nicaragua’s third payout from CCRIF. Previous payouts have been $1.1 million following Tropical Cyclone Otto in November 2016 and $500,000 for an earthquake in June of that year.
Reports from local and regional sources indicated that Hurricane Eta resulted in over 1,700 homes being affected, with 803 partially damaged and 77 destroyed; 1,500 families being evacuated; 30,000 people accessing shelters with some subsequent damage to shelters caused by high winds.
