CCRIF SPC, the regional parametric risk pool for the Caribbean and Central America, has announced it is to make a payout of US$17.4 million to the Government of Panama following the magnitude 7.7 earthquake that struck the country on October 9, 2026.
In line with CCRIF’s operational mandate to provide rapid liquidity to its members, the payout will be made within 14 days of the event.
The earthquake occurred at 12:56 p.m. local time (17:56 UTC), with its epicentre near Pitaloza Arriba on the Azuero Peninsula, damaging homes, schools, hospitals, public buildings, and roads in various provinces across the country.
The preliminary assessment reports 656 affected schools. Also, 14 shelters were opened that housed 598 people.
Using its SPHERA earthquake model, CCRIF estimated peak ground acceleration of up to 0.5 g in Panama, the only CCRIF member country to experience shaking above the model’s 0.03 g reporting threshold.
Based on the SPHERA model’s loss calculations, estimated national government losses exceeded the pre-arranged attachment point of Panama’s parametric earthquake policy, triggering the payout.
CCRIF Chief Executive Officer, Mr. Isaac Anthony, said: “Our thoughts are with the people of Panama, and especially with the families and communities affected by this earthquake. This payout will give the Government immediate liquidity to support its response at the time it is most needed.
“Panama’s decision to secure its CCRIF earthquake coverage through the Fondo de Ahorro de Panamá is a strong example of how parametric insurance can work alongside national savings and stabilization mechanisms as part of a layered approach to financing disaster risk.”
Since joining CCRIF in 2018, Panama has received three payouts totalling US$29 million for Hurricane Eta (2020) and 2024 rain events.
The October 9 earthquake payout raises Panama’s total to approximately US$47 million, and marks CCRIF’s 83rd member payout since 2007, surpassing US$500 million – each delivered within 14 days of the event.
CCRIF’s parametric insurance policies pay out based on the occurrence of a pre-defined hazard event and the losses due to that event calculated by CCRIF’s models, rather than relaying on loss assessments on the ground.
By streamlining this process, member governments, organisations and public utilities receive quick liquidity during the critical period immediately after a disaster
