Hurricane Beryl payouts trigger CCRIF parametric reinsurance program
After the onslaught of hurricane Beryl in the Caribbean, it transpires that the reinsurance program backing the CCRIF SPC (formerly known as the Caribbean Catastrophe Risk Insurance Facility) has been triggered, with the Natural Disaster Fund (NDF) one of those channelling capital to support CCRIF payouts made.
A number of CCRIF SPC payouts have already been revealed, after hurricane Beryl triggered tropical cyclone and excess rainfall parametric insurance policies for Caribbean islands.
Grenada is set to receive approximately US $44 million after its parametric tropical cyclone, fisheries, and excess rainfall policies were all triggered.
Jamaica is set to receive $16.3 million after hurricane Beryl triggered its parametric tropical cyclone insurance policy and a further $10.3 million after the storm triggered its excess rainfall policy under the CCRIF parametric risk transfer facility.
It appears that other islands may also be due payouts, as CelsiusPro, the specialist parametric, climate, weather and disaster risk transfer company and owner of Global Parametrics, said that the Natural Disaster Fund (NDF) managed by GP would suport payouts to Tobago, Grenada, Saint Vincent, and Trinidad.
The Natural Disaster Fund (NDF) is a public-private partnership funded by UK and German governmental entities and managed by Global Parametrics, with a mandate to provide risk capacity to support parametric insurance and risk transfer solutions for enhancing climate and natural catastrophe resilience, and a risk-sharing agreement in place with global reinsurance company Hannover Re.
As we reported earlier this week, the NDF has made US $1.45 million in payouts in Grenada after a windspeed cat-in-a-polygon parametric arrangement was triggered by hurricane Beryl.
Now, CelsiusPro has said additional payouts are being made to support the CCRIF SPC’s ability to pay its claims, as the NDF had participated in its last reinsurance renewal.
The company said that the Natural Disaster Fund (NDF) provided risk capacity to support the renewal of a multi-peril, multi-layer programme for the CCRIF.
“The renewal timely secured lines of reinsurance capacity for parametric risk transfer against earthquake, hurricane, excess rainfall, and public utilities catastrophe coverage that Central America and Caribbean governments members of CCRIF SPC purchase for the 2024 annual placement,” CelsiusPro explained.
Within weeks of hurricane Beryl’s passing, CelsiusPro explained that “the NDF released payouts exceeding USD 1.98 million to support businesses and communities in Tobago, Grenada, Saint Vincent, and Trinidad.”
The NDF has supported the CCRIF SPC reinsurance program since 2021 and has renewed its participation annually.
