US$1.44b paid out from catastrophe insurance

Barbados and other members have taken out about US$1.44 billion in coverage from the Caribbean Catastrophe Risk Insurance Facility (CCRIF).

CCRIF chief executive officer Isaac Anthony reported this yesterday while also sharing that “to date, we have made 78 payouts totalling nearly US$390 million, including our largest-ever payout of US$42.4 million to Grenada after Hurricane Beryl last year”.

He was speaking yesterday as the Second Wider Caribbean Risk Conference opened at Wyndham Grand Barbados Sam Lords Castle in St Philip.

“Total coverage provided by CCRIF currently stands about US$1.44 billion – almost tripling the coverage provided in its first year of operations,” Anthony said.

From its original 16 members in 2007 when it was established, CCRIF’s membership has “grown to 35 today – 19 Caribbean governments, four Central American governments, five Caribbean electric utility companies, seven water utilities, and a governmentowned tourist attraction”.

“This remarkable expansion in membership reflects not only the trust placed in CCRIF, but also the urgent need for innovative solutions in a region highly exposed to natural hazards,” the CEO stated.

He said that the US$390 million in payouts made to date “have helped governments quickly restore critical services, rebuild infrastructure, and, most importantly, bring relief to communities when they need it most”.

“By reducing delays in financing, CCRIF enables countries to avoid disruptive budget reallocations, protect essential social services, and reduce reliance

on costly borrowing,” Anthony said.

“But beyond numbers, these payouts represent lives saved, stabilised livelihoods, schools reopened, hospitals functioning, social protection systems being able to expand to support the most vulnerable among us and our economies finding the strength to recover and grow.”

Since its inception, CCRIF “has pioneered parametric-based insurance products using homegrown and innovative risk models that pay out based largely on the intensity of an event, not the measured damage on the ground,” he said.

“CCRIF’s parametric insurance products – covering tropical cyclones, earthquakes, excess rainfall, fluvial floods, drought, fisheries, and utilities – are designed to close the protection gap and strengthen fiscal resilience.

“Our expansion covering fisheries, electric utilities, and water utilities, ensures that key economic sectors are also financially protected. This innovation allows us to provide quick payouts – within 14 days – helping governments bridge the liquidity gap and support their citizens when it matters most,” Anthony added.

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