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CCRIF SPC, the Caribbean and Central America Parametric Insurance Facility and Development Insurer, is set to make its biggest single payout after after major hurricane Melissa triggered Jamaica’s tropical cyclone policy.
There could be more parametric risk transfer payout financing to come as well, as CCRIF said that the Government of Jamaica is expected to receive a second payout under its excess rainfall insurance policy as well.
The parametric excess rainfall assessment is still ongoing and these tend to take a few more days that determinations of trigger events for the CCRIF tropical cyclone coverage.
For the US $70.8 million tropical cyclone payout, CCRIF said that subject to final model verification, this payout will be made within 14 days, which is the target the development insurer always strives to beat.
CCRIF CEO, Mr. Isaac Anthony, commented, “This payout to Jamaica is not just a financial transaction, it is a reaffirmation of CCRIF’s mission to stand with our members in their most difficult moments. On behalf of the CCRIF Board, Management, and Team, I extend our heartfelt condolences to the people of Jamaica. We are proud to support the Government’s swift response and recovery efforts, and we remain committed to helping build a more resilient and secure future for all.”
CCRIF further stated that the potential additional payout for the excess rainfall coverage will be understood once the modelled loss value is fully validated.
This US $70.8 million payout to Jamaica will be the country’s fourth from the CCRIF parametric insurance product range, taking the total value of payouts from CCRIF to Jamaica to US $100.9 million.
In 2024, Jamaica received US $26.6 million following Hurricane Beryl, and in 2020, a payout was made after Tropical Cyclones Zeta and Eta.
Including the payout for Jamaica after hurricane Melissa, CCRIF will have made 81 payouts totalling US $462 million to member governments from its parametric disaster risk insurance facility.
Annual coverage across all member countries now stands at US $1.44 billion under the CCRIF parametric risk transfer offerings.
These valuable parametric insurance payouts will support Jamaica’s recovery and re-development after the devastating impacts of major hurricane Melissa last week.
As we reported the other day, Jamaica is awaiting an official determination on a potential $150 million payout from its catastrophe bond. The World Bank itself has indicated a payout is likely.
Jamaica to get $70.8m parametric CCRIF payout for hurricane Melissa winds was published by: www.Artemis.bm
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