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CCRIF SPC Pays Out $15.6 Million Following Hurricane Irma

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September 12, 2017

The Caribbean Catastrophe Risk Insurance Facility Segregated Portfolio Company (CCRIF SPC) will be making payouts totaling approximately $15.6 million to the governments of Antigua and Barbuda, Anguilla, and St. Kitts and Nevis as a result of the passage of Hurricane Irma, which triggered payments on these countries' tropical cyclone policies. Preliminary calculations of the payouts for each country are shown in the chart below.


Source: CCRIF September 7, 2017, press release.

CCRIF is verifying the payout calculations and is in discussion with the three governments about making arrangements for transfer of these payouts, which will be completed within 14 days of the event—as mandated by CCRIF's operational guidelines.

Anguilla and St. Kitts and Nevis also have excess rainfall (XSR) policies, and CCRIF is assessing whether these policies were triggered by the rains from Hurricane Irma, which may possibly result in a second payout under those policies. The assessment under the XSR policies will be determined in the next few days. 

Hurricane Irma, now recognized as the most powerful Atlantic Ocean hurricane in recorded history, passed through the Leeward Islands as a Category 5 hurricane with maximum sustained winds of 185 mph (300 km/h) and intense rainfall. CCRIF is also following the path of Hurricane Jose. 

The CCRIF Board will meet shortly to determine additional support that it can offer the affected countries. 

"The CCRIF Board and Team offer condolences for the loss of life and hope these funds will provide some assistance," CCRIF CEO Isaac Anthony said. "We stand ready to support the Government and people of these CCRIF countries as they recover from the effects of this devastating hurricane."

Since the inception of CCRIF in 2007, the facility has made 22 payouts for hurricanes, earthquakes, and excess rainfall to 10 member governments totaling approximately $69 million. The current payments will bring the total to approximately $85 million. Last year, CCRIF made payouts totaling $29 million to 4 countries after Hurricane Matthew.

CCRIF SPC, which is celebrating its 10th anniversary in 2017, is a segregated portfolio company owned, operated, and registered in the Caribbean. It limits the financial impact of catastrophic hurricanes, earthquakes, and excess rainfall events to Caribbean and—since 2015—Central American governments by quickly providing short-term liquidity when a parametric insurance policy is triggered. It is the world's first regional fund utilizing parametric insurance, giving member governments the unique opportunity to purchase earthquake, hurricane, and excess rainfall catastrophe coverage with the lowest possible pricing.

CCRIF was developed under the technical leadership of the World Bank and with a grant from the government of Japan. It was capitalized through contributions to a multi-donor trust fund (MDTF) by the government of Canada, the European Union, the World Bank, 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. In 2014, an MDTF was established by the World Bank to support the development of CCRIF SPC's new products for current and potential members, and facilitate the entry for Central American countries and additional Caribbean countries. The MDTF currently channels funds from various donors, including Canada, through the Department of Foreign Affairs, Trade and Development; the United States, through the Department of the Treasury; the European Union, through the European Commission; and Germany, through the Federal Ministry for Economic Cooperation and Development.

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