CCRIF SPC (formerly the Caribbean Catastrophe Risk Insurance Facility) in collaboration with the Caribbean Development Bank (CDB)has launched the CCRIF SPC 10th anniversary celebrations.
The launch will signal the start of a year-long celebration to mark CCRIF’s 10 years in the business of providing catastrophe risk insurance to the Caribbean, and more recently to Central American governments; and to honor the CCRIF’s innovative model of risk transfer that other regions in the world can emulate.
CCRIF first began operations 10 years ago prompted by the damage wrought by Hurricane Ivan in 2004. Following the passage of Ivan, the Caribbean Community (CARICOM) Heads of Government held an emergency meeting to discuss critical issues surrounding the need for the provision of catastrophe risk insurance for its members. Consequently, CARICOM resolved to take action and approached the World Bank for assistance to design and implement a cost-effective risk transfer program for member governments. This marked the beginning of what would become the Caribbean Catastrophe Risk Insurance Facility, formed in 2007, which would later (in 2014) become a segregated portfolio company named CCRIF SPC.
CCRIF sells hurricane, earthquake and excess rainfall parametric insurance policies to Caribbean and Central American governments. Since its inception in 2007, CCRIF has made a total of 22 payouts to 10 member governments totaling US$69 million, all within 14 days of the event. In 2016, CCRIF made nine payouts totaling over US$31 million on six member countries’ polices for four events: Hurricane Earl, an earthquake that affected Nicaragua and nearby countries, Hurricane Matthew, and Hurricane Otto.
Today, CCRIF is viewed as an internationally-recognized example of a risk transfer mechanism, with such mechanisms becoming increasingly important and a key and indispensable component of economic policy and disaster risk management (DRM) strategies as countries seek to grow their economies, reduce poverty and become internationally competitive.
Internationally, Caribbean governments continue to be recognized for leading the way in pre-disaster planning.
The CCRIF anniversary launch will be held at the Caribbean Development Bank, Wildey, St. Michael, Barbados.