CCRIF SPC (formerly the Caribbean Catastrophe Risk Insurance Facility) is preparing to make a payout to the Government of Haiti as a result of the passage of Hurricane Matthew which triggered a payment on the country’s Tropical Cyclone policy. Based on preliminary calculations, Haiti will receive a little over US$20 million – the largest payment ever made by CCRIF. This was revealed this afternoon by CCRIF Chairman Mr. Milo Pearson at the IMF/World Bank Group Annual Meetings. Note that over the past four years, Haiti's insurance premiums were paid generously by the Caribbean Development Bank (CDB)https://www.haitilibre.com/en/news-17545-haiti-security-grant-to-pay-haiti-s-insurance-premium.html https://www.haitilibre.com/en/news-14569-haiti-security-$2-37m-grant-to-pay-haiti-s-insurance-premium.html and in 2010 and 2011, Haiti's premiums were paid by the CBD and the Government of Canada)

This payment will be Haiti’s second payment from CCRIF. Recall that in 2010, following the devastating earthquake, CCRIF made a payment to the Government of Haiti of US$7.7 million, based on the terms of its Earthquake Policy. That payment represented the first inflow of direct financial assistance received by Haiti at that time. The Haitian government used the CCRIF funds to cover salaries of key emergency personnel, thereby “keeping the wheels of government turning.”

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CCRIF’s parametric insurance products are insurance contracts that make payments based on the intensity of an event (for example, hurricane wind speed, earthquake intensity or volume of rainfall) and the amount of loss calculated in a pre-agreed model caused by these events. Parametric insurance enables payouts to be made very quickly after a hazard event. This is different from traditional insurance settlements that require an on-the-ground assessment of individual losses after an event before a payment can be made.

HL/ HaitiLibre