Wed | Nov 14, 2018

CCRIF makes payout to Belize for rain losses

Published:Wednesday | August 24, 2016 | 12:00 AM
The Parliament of Belize in the capital city of Belmopan.

The Caribbean Catastrophe Risk Insurance Facility (CCRIF) has made a payout of US$261,073 to the Government of Belize, under its excess rainfall insurance policy.

The payout stems from the damage caused by heavy rains that affected the country earlier this month, due to the passage of Hurricane Earl.

The National Emergency Management Organisation in Belize reported that the rains caused widespread flooding, resulting in damage to homes and businesses, interruptions of water and electricity services, and losses to the tourism and agriculture sectors.

Belize purchased excess rainfall coverage for the first time for the 2016-17-policy year, which began on June 1.

The modelled 'rainfall index loss' determined from the level of Hurricane Earl's rainfall was greater than the deductible on the country's excess rainfall

policy and as a result, the policy was triggered.

As part of its disaster risk management programme, Belize also has a CCRIF tropical cyclone or hurricane policy, which is based on modelled losses due to wind and storm surge.

However, the losses from wind and storm surge due to Hurricane Earl were below the policy attachment point as selected by the Government and, therefore, the country's tropical cyclone policy was not triggered.

Demonstrates commitment

In a statement on Monday, CCRIF said the payout to Belize demonstrates its commitment to provide policy payouts within two weeks after a qualifying hazard event.

"The CCRIF Board and Team are relieved that there was no loss of life - and we hope that the funds received from CCRIF will be useful to the Government of Belize in their recovery efforts. We wish the Government and people of Belize a rapid recovery," said CEO Issac Anthony.

For the policy year 2016-17, CCRIF sold 15 tropical cyclone policies, 11 excess rainfall policies and 13 earthquake policies to its 17 members in the Caribbean and Central America.

CCRIF has been providing tropical cyclone and earthquake coverage since 2007, and first introduced its excess rainfall policy in 2013.

In 2017, CCRIF expects to bring to market a new policy for drought.

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, and the governments of the United Kingdom and France, the Caribbean Development Bank and the governments of Ireland and Bermuda, as well as through membership fees paid by participating governments.

Since the inception of CCRIF in 2007, the facility has made 15 payouts totalling US$38.8 million to 10 member governments.