Grand Cayman, Cayman Islands, September 10, 2015 – CCRIF SPC (formerly the Caribbean Catastrophe Risk Insurance Facility) has made a payment of EC$6.5 million (approximately US$2.4 million), the maximum payable under the policy, to the Government of Dominica under the Facility’s Excess Rainfall Programme – as a result of rains that occurred during Tropical Storm Erika on August 27, 2015. CCRIF will also, following consultation with the Government of Dominica, provide additional financial assistance under its Technical Assistance Programme, for specific rebuilding projects.
Erika was the fifth named storm of this year’s Atlantic Hurricane Season and maintained tropical storm status for its entire life cycle. The centre of the storm passed about 90 miles to the north of the Commonwealth of Dominica at its nearest point, producing significant rainfall across the island. The Caribbean Disaster Emergency Management Agency reports that the Canefield Airport near the capital of Roseau recorded 12.64 inches of rain in a 12-hour period on August 27. This resulted in severe flooding and landslides leading to the deaths of approximately 30 persons and causing widespread structural damage.
Dominica is one of 12 member countries that purchased excess rainfall coverage this year; representing an increase of 4 over the 8 countries that purchased excess rainfall policies for the first time last year. Excess rainfall coverage complements the country’s hurricane (tropical cyclone) insurance which is based on damages caused by wind and storm surge.
This is the second payout that the Government of Dominica will receive from CCRIF – in 2007, a payout was made under Dominica’s earthquake policy for a magnitude 7.4 earthquake that occurred in November of that year. Collectively, these policies for hurricanes, excess rainfall and earthquakes are part of the country’s comprehensive disaster management programme.
CCRIF CEO, Mr. Isaac Anthony stated, “The CCRIF Board and Team wish to express our condolences to the people of Dominica for the loss of life and disruption of livelihoods and we offer our support as you implement your recovery and rehabilitation activities. We are hopeful that the funds received from CCRIF will provide immediate liquidity to address your most urgent needs.”
About CCRIF SPC: CCRIF SPC is a segregated portfolio company, owned, operated and registered in the Caribbean. It limits the financial impact of catastrophic hurricanes, earthquakes and excess rainfall events to Caribbean and –since 2015 – Central American governments by quickly providing short-term liquidity when a parametric insurance policy is triggered. It is the world’s first regional fund utilising parametric insurance, giving member governments the unique opportunity to purchase earthquake, hurricane and excess rainfall catastrophe coverage with lowest-possible pricing.
CCRIF was developed under the technical leadership of the World Bank and with a grant from the Government of Japan. It was capitalised through contributions to a multi-donor Trust Fund by the Government of Canada, the European Union, the World Bank, the governments of the UK and France, the Caribbean Development Bank and the governments of Ireland and Bermuda, and membership fees paid by participating governments. Since the inception of CCRIF in 2007, the facility has made 13 payouts totalling approximately US$38 million to 8 member governments.