CARICOM Secretariat salutes Risk Insurance Facility for meeting the region’s needs

A segregated portfolio company (SPC), CCRIF SPC was formerly the Caribbean Catastrophe Risk Insurance Facility (CCRIF).

The company has been lauded as the world’s first regional parametric risk insurance pool, and another CARICOM best practice that can be shared with the world.

According to the secretariat, the CCRIF SPC is evidence that small countries, together with their development partners, the multilateral financial institutions, and bilateral partners can work together to address their vulnerabilities and build resilience.

CCRIF SPC yesterday launched its 10th-anniversary celebrations at an event hosted by the Caribbean Development Bank here in Barbados.

Assistant Secretary General for Trade and Economic Integration at the Secretariat Joseph Cox in his address said not only did the CCRIF emerge as the realization of the joint visioning with development partners but also as a platform for effective functional cooperation among all the Members and Associate Members of the Caribbean Community.

The economic and environmental vulnerabilities of CARICOM States he said are well known, noting that every time we endure the devastation of another catastrophe, we are reminded of the setbacks accruing to future economic prosperity.

“The havoc wreaked by Hurricane Ivan in 2004 galvanized CARICOM Heads of Government to consider options to moderate the distress resulting from the temporary cessation of economic activity after a disaster.  The solution which eventually emerged, through collaboration with the World Bank, was for a parametric risk insurance mechanism covering both public and private assets,” he reinforced.

Cox said upon establishment, the CCRIF provided not only sovereign assets but, with new products which have since come on stream, the region is moving towards selective coverage of private assets.  It is for this reason he said the CCRIF must be commended for evolving its mandate towards the achievement of the Community’s original objective with the rollout of targeted products, which meet the needs of both the public and private sectors.

He says, “While we cannot change the incidence of catastrophes, we can certainly change our preparedness and response to natural disasters which can sometimes reverse decades of economic and social progress.”

Since 2007, CCRIF has made 21 payouts amounting to over US$68.0 million for hurricanes, earthquakes and excess rainfall events in 10 countries.

Story from CCRIF via Loop