The Caribbean Catastrophe Risk Insurance Facility Segregated Portfolio Company (CCRIF SPC) has announced the additions of the British Virgin Islands and Montserrat to its facility for 2018/19. Both have purchased coverage, effective since June 1, for tropical cyclone and excess rainfall, while the government of the Virgin Islands obtained additional earthquake cover.
CCRIF’s membership now stands at 19 countries – 18 Caribbean governments and one Central American government – and has witnessed increased demand since hurricanes Matthew, Irma and Maria highlighted the probability of future climate events exacerbated by climate change.
The expansion of this risk pool is an important step towards creating a region more robust to extreme geophysical and climate events. CCRIF’s responsiveness to paying its members has been exemplary – all 36 payouts to-date made within 14 days of an event – and must continue.
Since its inception in 2007, the facility has made payouts totalling $130.5 million to 13 member governments including $83.6 million for Matthew, Irma and Maria, which accounted for 64% of the total. Even after these payouts, CCRIF has remained financially solvent with its long-term sustainability intact.
Commenting on the announcement, Chief Executive Officer (CEO) of CCRIF, Isaac Anthony, said, “the addition of these two countries to the risk pool is consistent with our current strategic direction which is geared towards scaling up the facility by adding new members, increasing products we offer and also encouraging members to increase coverage levels.”
