GRAND CAYMAN, Cayman Islands, Friday September 11, 2015 – The CCRIF SPC, formerly the Caribbean Catastrophe Risk Insurance Facility, has made a payment of EC$6.5 million (US$2.4 million), the maximum payable under the policy, to the government of Dominica under the Facility’s Excess Rainfall Programme, as a result of rains that occurred during Tropical Storm Erika on August 27, 2015.
CCRIF will also, following consultation with the government, provide additional financial assistance under its Technical Assistance Programme, for specific rebuilding projects.
“The CCRIF board and team wish to express our condolences to the people of Dominica for the loss of life and disruption of livelihoods and we offer our support as you implement your recovery and rehabilitation activities. We are hopeful that the funds received from CCRIF will provide immediate liquidity to address your most urgent needs,” CEO Isaac Anthony said.
This is the second payout that the government of Dominica will receive from CCRIF. In 2007, a payout was made under Dominica’s earthquake policy for a magnitude 7.4 earthquake that occurred in November of that year.
Collectively, these policies for hurricanes, excess rainfall and earthquakes are part of the country’s comprehensive disaster management programme.
Erika was the fifth named storm of this year’s Atlantic hurricane season and passed about 90 miles to the north of Dominica at its nearest point, producing significant rainfall across the island which resulted in severe flooding and landslides that resulted in the deaths of more than 30 people and caused widespread structural damage.
Dominica is one of 12 member countries that purchased excess rainfall coverage this year. Excess rainfall coverage complements the country’s tropical cyclone insurance which is based on damages caused by wind and storm surge.
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 utilizing parametric insurance, giving member governments the unique opportunity to purchase earthquake, hurricane and excess rainfall catastrophe coverage with lowest-possible pricing.
Since the inception of the CCRIF in 2007, the facility has made 13 payouts totalling approximately US$38 million to eight member governments.