Melissa triggers second CCRIF payout, US$150m cat bond
Published:Sunday | November 9, 2025 | 12:08 AM
CCRIF Spc, the Caribbean catastrophe risk insurance facility, will make a second payment to Jamaica, this time in relation to rainfall due to Hurricane Melissa.
A day later, on Friday, the World Bank said it would pay out 100 per cent of Jamaica’s catastrophe bond, amounting to US$150 million of insurance money.
In addition to the forthcoming cat bond funds to Jamaica, a broad package of assistance is being mobilised, the World Bank said, adding that the package includes emergency finance, redeployment of existing project funds, as well as targeted private-sector support through the IFC.
CCRIF initially indicated on October 31 that Jamaica’s tropical cyclone policy would trigger a “record” payout of US$70.8 million due to damage caused by the Category 5 hurricane. Then on Thursday it said Jamaica would also receive another US$21.1 million under its excess rainfall parametric insurance policy with CCRIF. That brings the total amount triggered by Melissa to US$91.9 million, which translates to nearly $15 billion in local currency.
Jamaica’s preliminary estimate of the havoc caused by Melissa is in region of US$6 billion to US$7 billion.
CCRIF has already paid out US$8 million of the tropical cyclone insurance proceeds to Jamaica and says the other $62.8 million will follow by November 13. The parametric insurance facility aims to make payouts within 14 days of a disaster, in order to provide liquidity to policyholders, namely governments, to fund recovery efforts.
In 2024, CCRIF also paid out US$26.6 million to Jamaica following Hurricane Beryl.
Jamaica currently has coverage for tropical cyclones, excess rainfall and earthquakes.
Meanwhile, the date for the payout of the cat bond was unspecified.
Such bonds transfer financial risks from natural disasters to global capital markets, the World Bank said.
In Jamaica’s case, its cat bond is held by 15 entities, two-thirds of which are fund managers specialising in insurance-linked securities, and one-third being asset managers, according to Fitch ratings agency.