CCRIF pays $4.67m to Honduras under parametric excess rainfall insurance
The CCRIF SPC (formerly known as the Caribbean Catastrophe Risk Insurance Facility) has made a payout of US $4.67 million to the Government of Honduras after its parametric excess rainfall insurance policy was triggered following a severe event in November, taking CCRIF parametric payouts made for the current policy year to almost US $118 million.
Honduras was impacted by an excess rainfall event that affected that country over the period November 14th to 19th 2024.
This rainfall event significantly impacted roads across badly affected parts of Honduras, cutting off several communities and negatively impacting many people.
As with every parametric insurance payout made under policies provided by CCRIF SPC, the funds were transferred to the Government of Honduras within 14 days of the rainfall event.
The Minister of Finance Christian Duarte commented after receiving the payout, “On behalf of the Government led by our President Xiomara Castro, we express our gratitude to CCRIF for the disbursement received under our excess rainfall policy, which was triggered due to the impacts and damages associated with Tropical Storm Sara.
“Without a doubt, this type of instrument strengthens financial resilience and, compared to others, it provides us with the ability to respond more immediately during the humanitarian assistance and rehabilitation phase of an emergency. Additionally, it enables us to reach our affected population promptly and effectively.”
CCRIF CEO Mr. Isaac Anthony also said, “I am pleased that Honduras took the decision to join CCRIF and I look forward to continuing to engage with the Government as it accesses CCRIF parametric insurance as an effective means of closing the protection gap and strengthening the country’s public financial management framework. Access to excess rainfall parametric insurance and accompanying payouts when the policy is triggered will allow the Government the flexibility to begin recovery efforts immediately following a natural disaster. Payouts received within 14 days of an event can be used to address the country’s most urgent needs, including helping vulnerable populations or rehabilitating critical infrastructure among other areas.”
This latest event that has triggered CCRIF parametric insurance policies takes payouts made over the course of this year to more than US $122 million.
The majority of that came from hurricane Beryl, which resulted in US $84.5 million of payouts from CCRIF parametric hurricane insurance policies.
Included within the hurricane Beryl payouts were the first made to utilities, as CCRIF has expanded its coverage to some commercial entities in the region.
While the Government of Panama recently received US $26.7 million after the countries parametric rainfall insurance policy was triggered following a recent severe event and Guatemala also got a parametric rainfall insurance payout earlier this year.
Since launching back in 2007, CCRIF has made 78 payouts for parametric policies that were triggered, totalling approximately US $390 million.
