CCRIF makes parametric rainfall insurance payouts after tropical storm Philippe

The CCRIF SPC (formerly known as the Caribbean Catastrophic Risk Insurance Facility), has made two payouts for Caribbean countries parametric excess rainfall insurance policies, after tropical storm Philippe in early October.

Tropical storm Philippe made landfall on Antigua and Barbuda on October 2nd and then came close to the British Virgin Islands on October 4th, with heavy rain and flooding affecting both countries.

As a result, CCRIF has made roughly US $3.4 million in payouts on these countries’ parametric insurance policies for Excess Rainfall

Antigua and Barbuda has received US $2,880,424, while the British Virgin Islands received US $552,297 and this was the BVI’s first payout from CCRIF.

For the Government of Antigua and Barbuda, this was its 3rd payout from a CCRIF parametric disaster insurance policy, having received payouts following tropical cyclone Irma in 2017 and an excess rainfall event in 2022.

As with every payout, CCRIF has made these within 14 days of the event, once again showing the significant value of the parametric trigger and how that can result in rapid disbursement of funds after an insurance claim on the policy.

CCRIF CEO Mr. Isaac Anthony commented that, “Investment in CCRIF’s catastrophe risk insurance each year is an important part of their comprehensive disaster risk management strategies, as CCRIF payouts help to close the protection gap, reduce budget volatilities associated with exogenous shocks and allow governments to address the country’s most urgent needs. Whilst payouts are often used to address immediate needs after a disaster, governments can also implement activities to increase resilience against future hazard events, build back better and enhance social protection systems to become more shock-responsive.”

Including these two latest payouts, the CCRIF has now paid out US $265 million since its inception in 2007, with 62 payouts made to 17 of its 26 members after their parametric insurance policies were triggered.

CCRIF said that in the last few days it has been closely watching closely tropical storm Tammy which came close to a number of its member countries, including Antigua and Barbuda, Montserrat, St. Kitts and Nevis, Anguilla, and St. Maarten.

Flooding and damage has been reported across a number of Caribbean islands, so it is possible we see more CCRIF payouts in the coming weeks.

Recall that CCRIF, alongside the other main sovereign parametric risk pools, recently signed an MOU that will see them explore a joint reinsurance facility to facilitate access to the capital markets.