Caribbean to benefit from fisheries sector disaster insurance
GEORGE TOWN, Cayman Islands, CMC – The Caribbean Catastrophe Risk Insurance Facility Segregated Portfolio Company (CCRIF SPC) and the World Bank have issued the Caribbean Oceans and Aquaculture Sustainability Facility (COAST) fisheries parametric insurance policy to two of its member governments – Grenada and St Lucia.
The COAST insurance policies provide coverage for fisherfolk and other players in the fisheries industry to enable them to recover quickly after weather-related events.
Initial funding for COAST has been provided by the U.S. State Department.
The COAST insurance product is another in a list of parametric insurance products that are provided by CCRIF to Caribbean and Central American governments.
Since its inception in 2007, CCRIF has been providing insurance for tropical cyclones and earthquakes, and in 2013, based on demand from its members, the facility provided coverage against excess rainfall events.
While it is governments that purchase COAST policies, this parametric insurance product is unique – it incorporates a livelihood protection component and a tropical cyclone component.
The COAST product provides coverage for losses caused by “bad weather” on fisherfolk and for direct damages caused by tropical cyclones (wind and storm surge) to fishing vessels, fishing equipment, and fishing infrastructure.
In this case, “bad weather” is defined as an occurrence of high waves and heavy rainfall throughout the policy year.
The Caribbean is the first region globally to develop and implement parametric climate risk insurance for the fisheries sector.
For the first time, vulnerable fishing communities will have access to insurance developed specifically for their needs, protecting their livelihoods and playing a key role in closing the protection gap.
COAST insurance also is parametric, whereby payouts are made based on a pre-defined level of wave height, rainfall, wind or storm surge, and their impact.
Payouts can be made within 14 days of the event.