CCRIF pays US$5.8 million to Barbados following the passage of Tropical Storm Kirk
Bridgetown, Barbados, October 22, 2018. On Friday October 19th, Barbados Prime Minister Honourable Mia Amor Mottley met with CCRIF CEO Mr. Isaac Anthony, Deputy Chairperson Mrs. Desirée Cherebin and Board member Mrs. Faye Hardy at a short ceremony to mark the payout by CCRIF to the Government of Barbados following the passage of Tropical Storm Kirk in October. The payout of US$5.8 million – or BDS$11.6 million – was made under the country’s Excess Rainfall policy and was made within 14 days of the event.
In his remarks, CCRIF CEO, Isaac Anthony spoke to the fact that natural hazards continue to have an inordinate impact on the economies of the small island states of the Caribbean and the importance of risk transfer instruments in country disaster risk management (DRM) and climate resilience strategies. He indicated that the importance of risk financing and the parametric products that CCRIF provides has become even more evident especially after the past two years in which Hurricanes Matthew, Irma and Maria affected so many of the countries in the region. However, he was quick to point out that, notwithstanding the value of these products, CCRIF insurance or risk transfer in general is not a panacea – but only part of the DRM equation. In the Caribbean, we know all too well that we must have allocations in our budget for disaster management and recovery supported by comprehensive disaster management policies and plans. We must – and can – reduce our vulnerabilities to natural hazards.
In receiving the payout, Prime Minister Mottley thanked CCRIF saying, “Every dollar in damage for a country that is in a tight fiscal situation is a dollar that we really would have preferred not to lose and therefore [we are pleased] to have this sum coming back to us to help us offset some of the damage as a result of Tropical Storm Kirk…. we are trying to take a proactive approach and this money will help us to continue in that manner.”
Since its inception in 2007, CCRIF has made payouts totaling US$136.3 million to 13 member governments in the Caribbean and Central America – of which US$19.3 million has been paid to Barbados.
About CCRIF SPC: CCRIF SPC is a segregated portfolio company, owned, operated and registered in the Caribbean. It limits the financial impact of catastrophic hurricanes, earthquakes and excess rainfall events to Caribbean and – since 2015 – Central American governments by quickly providing short-term liquidity when a parametric insurance policy is triggered. It is the world’s first regional fund utilising parametric insurance, giving member governments the unique opportunity to purchase earthquake, hurricane and excess rainfall catastrophe coverage with lowest-possible pricing. CCRIF was developed under the technical leadership of the World Bank and with a grant from the Government of Japan. It was capitalized through contributions to a Multi-Donor Trust Fund (MDTF) by the Government of Canada, the European Union, the World Bank, the governments of the UK and France, the Caribbean Development Bank and the governments of Ireland and Bermuda, as well as through membership fees paid by participating governments. In 2014, an MDTF was established by the World Bank to support the development of CCRIF SPC’s new products for current and potential members, and facilitate the entry for Central American countries and additional Caribbean countries. The MDTF currently channels funds from various donors, including: Canada, through the Department of Foreign Affairs, Trade and Development; the United States, through the Department of the Treasury; the European Union, through the European Commission, and Germany, through the Federal Ministry for Economic Cooperation and Development. In 2017, the Caribbean Development Bank, with resources provided by Mexico, approved a grant to CCRIF SPC to provide enhanced insurance coverage to the Bank’s Borrowing Member Countries that insure through CCRIF against tropical cyclone, earthquake and excess rainfall risks.
20 Member Governments
Caribbean: Anguilla, Antigua & Barbuda, Barbados, Belize, Bermuda, British Virgin Islands, Cayman Islands, Dominica, Grenada, Haiti, Jamaica, Montserrat, St. Kitts & Nevis, Saint Lucia, Sint Maarten, St. Vincent & the Grenadines, The Bahamas, Trinidad & Tobago and Turks & Caicos Islands
Central America: Nicaragua