GRAND CAYMAN, Cayman Islands, Friday June 15, 2018 – British Virgin Islands (BVI) and Montserrat have joined the region’s risk insurance facility just in time for the 2018 Atlantic hurricane season, purchasing Tropical Cyclone or Excess Rainfall policies.
CCRIF SPC – formerly the Caribbean Catastrophe Risk Insurance Facility – said in a statement that the BVI had also purchased cover against earthquakes.
The two territories purchased coverage for the 2018/19 policy year beginning June 1, the official start of the season.
With the two now part of the CCRIF, the facility’s membership now stands at 19 countries, comprising 18 Caribbean governments and one Central American government.
“The addition of these two countries to the risk pool is consistent with our current strategic direction which is geared towards scaling up the facility by adding new members, increasing products we offer and also encouraging members to increase coverage levels,” said CCRIF chief executive officer Isaac Anthony.
It said the BVI and Montserrat were joining at a time when many countries are increasing their level of coverage. While all existing member policies were renewed for the 2018/19 policy year, 12 member governments increased the value of their coverage limit, by at least 10 per cent, for either Tropical Cyclone or Excess Rainfall policies. Additionally, two countries increased the coverage limits on their Earthquake policies.
Since CCRIF’s inception in 2007, it has made payouts totalling US$130.5 million to 13 member governments, including US$83.6 million last year for Matthew, Irma and Maria, which have accounted for 64 per cent of the total. All 36 payouts to date were made within 14 days of the end of the event – a core principle of CCRIF SPC. In some cases, partial payouts were made within seven days upon request by the recipient governments.
Even after these payouts, the CCRIF said it remains financially solvent with its long-term sustainability intact.