Germany’s government-owned development bank, KfW, and the World Bank have signed an agreement that will see €15 million contributed, from the Federal Republic of Germany, to the Central America and Caribbean Catastrophe Risk Insurance Program (CACCRIP).
This is the biggest contribution to the CACCRIP from a single donor and is part of efforts from the international community to address increasing disaster risks by supporting insurance mechanisms that provide rapid payouts to countries in the aftermath of a disaster.
“With climate change, we can expect more frequent and intensive weather events and hurricanes. This calls for countries to build resilience from a 360 degree perspective from disaster preparedness to physical and financial resilience,” said Jorge Familiar, Regional Vice President for Latin America and the Caribbean.
“This initiative is part of a broader engagement where we are working with countries in the Caribbean and Central America to develop cost-effective, affordable and sustainable disaster risk financing and insurance strategies”.
The new funding for the CACCRIP will be used to continue improving the affordability of high-quality sovereign catastrophe risk transfer associated with earthquakes and climate risks for the Council of Ministers of Finance of Central America and the Dominican Republic (COSEFIN) countries participating in CCRIF SPC, a multi-country risk pool.
It will also be used to enhance the capacity of the Ministries of Finance to develop and implement disaster risk financing and insurance strategies. The CACCRIP also supports activities in Caribbean Community (CARICOM) countries with similar objectives.
“This is an important step to enhance the support to the Central American countries in their efforts to adapt to the impacts of climate change.” said Ingrid-Gabriela Hoven, Director General for Global Programs.
“The CCRIF is an important part of the the InsuResilience Global Partnership. The CCRIF has proven its ability to quickly help poor and vulnerable people in the aftermath of disasters.”
As part of a comprehensive disaster risk management strategy, the CACCRIP has supported the development of disaster risk financing strategies and operational plans, as well as a tool to assess the macroeconomic impact of disasters, and the development of budget classifiers.
