Ten years in from its foundation, CCRIF SPC (formerly the Caribbean Catastrophe Risk Insurance Facility) helps countries in the Caribbean and Central America pool their resources for a much more effective management of risks associated with natural phenomena such as hurricanes and earthquakes.
CCRIF SPC was set up in response to Hurricane Ivan which in 2004 caused damages in excess of $6 billion as it raged over nine countries. Losses in Grenada and the Cayman Islands equalled close to 200% of those countries’ GDP.
Since its inception, pay-outs to member governments have totalled close to $70 million, providing a welcome degree of financial succour in the immediate aftermath of catastrophic weather events. The multi-country risk pool – the first of its kind in the world and since emulated in Africa and elsewhere – adds a layer of resilience to its seventeen member states. Participating countries enjoy significantly broader insurance coverage, at lower premiums, than policies available from commercial parties. They also benefit from easier access to the reinsurance market.
CCRIF’s parametric insurance products dovetail with national disaster risk management strategies and economic development policies. Pay-outs are quickly disbursed, within two weeks, as the amounts are calculated based on the event’s intensity using a pre-agreed model to calculate losses due to that event. This approach dispenses with on-the-ground damage and loss assessments after the event.
In recognition of the supreme importance of pooled risk facilities, the judges agree to declare CCRIF SPC winner of the 2017 Best Sustainable Insurance Leadership Latin America & Caribbean Award.