BRIDGETOWN, Barbados, Wednesday September 20, 2017 – Unprecedented storms this hurricane season have pushed payouts from the CCRIF SPC (formerly the Caribbean Catastrophe Risk Insurance Facility) to battered islands past the US$100 million mark.
The 10-year-old facility revealed yesterday that it has made payouts of a little more than US$100 million to 12 of its 17 member countries — all within 14 days of an event.
The US$100 million mark was reached following payouts under the excess rainfall policy of three countries — Anguilla, Turks & Caicos Islands, and The Bahamas — as a result of rainfall from Hurricane Irma which barreled through the northern Caribbean two weeks ago.
Two of these three countries — Anguilla and the Turks & Caicos Islands — also received payouts under their tropical cyclone policies due to the impacts of Irma.
In a statement, CCRIF SPC noted that with two months remaining in this year’s hurricane season, the facility has already made payouts totalling US$31.2 million to six countries under their tropical cyclone (TC) and excess rainfall (XSR) policies and under a new feature for tropical cyclone policies known as the Aggregate Deductible Cover (ADC), following the passage of Hurricane Irma.
The facility has however come under criticism from the Bahamian government which said that it paid a premium of US$2.6 million to the Caribbean Catastrophe Risk Insurance Facility (CCRIF) and only received US$234,000 in the aftermath of Hurricane Irma.
The insurance facility had explained that the calculations for The Bahamas were not made based on the impact of Irma, but on the aggregate deductible cover (ADC).
“The ADC represents a means by which CCRIF SPC can help its members when modelled losses fall below the attachment point, but where there are observed losses on the ground,” it said.
CEO of CCRIF, Isaac Anthony further explained that “the injection of short-term liquidity that CCRIF provides when a policy is triggered is not intended to cover all the losses on the ground following a disaster, but is designed to allow governments to reduce their budget volatility and to provide much needed capital for emergency relief such as clearing of debris and other clean-up activities, restoring critical infrastructure, and most importantly providing humanitarian assistance to the affected population, thereby reducing post-disaster resource deficits”.