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For the policy year 2022/23, which started on June 1, CCRIF SPC member governments renewed their parametric insurance coverage for tropical cyclones, excess rainfall and earthquakes, and the fisheries sector. For the earthquake, tropical cyclone and excess rainfall policies, members ceded over US$1.2 billion in coverage – an increase of 10 per cent over the previous year. Thirteen member governments increased their coverage compared with the 2021/22 policy year. The renewal and demand for increased coverage by members illustrate that countries continue to recognize the critical importance of financially protecting their economies against natural disasters, especially in the context of the increasing frequency and intensity of natural hazards.
CCRIF’s policy renewals process is underpinned by high levels of stakeholder engagement and consultation and involves the CCRIF team meeting with each member to discuss various policy options and to address other related needs that they may have. These engagements also allow the CCRIF team to share new developments related to CCRIF itself, including new products in development or model updates, and to share information and technical content on disaster risk financing tools. Other opportunities and information related to the CCRIF Technical Assistance Programme are also shared.
As has been the case in previous years, CCRIF continued to work with development partners to explore opportunities to support its members to retain and increase coverage. The World Bank, in partnership with the European Union (EU) through its Caribbean Regional Resilience Building Facility managed by the Global Facility for Disaster Reduction and Recovery, made available additional grant funding to CCRIF to support eligible Caribbean countries. Also the EU, Germany (through KfW Development Bank and Federal Ministry of Economic Cooperation and Development (BMZ)) and the United States Treasury, through the Central America and the Caribbean Catastrophe Risk Insurance Program, made available additional grant funding to CCRIF SPC to support Central American members.
The World Bank provided premium support to pilot countries Grenada and Saint Lucia for a fourth year for their 2022/23 COAST policies. COAST is designed to support the fisheries sector and fisherfolk following climate-related disasters. The World Bank has been providing premium support to these two countries since COAST was introduced in 2019.
CCRIF’s value to members is continuously demonstrated through its quick payouts following natural disasters, allowing governments to address their most pressing needs, including support to vulnerable communities.
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