Caribbean Catastrophe Risk Insurance Facility (CCRIF SPC)
CCRIF SPC is a not-for-profit risk pooling facility, owned, operated and registered in the Caribbean for Caribbean governments. It offers parametric insurance designed to limit the financial impact of catastrophic tropical cyclones, earthquakes and excess rainfall events on Caribbean governments by quickly providing short-term liquidity when a policy is triggered. Products are offered through segregated portfolios, which allows for total segregation of risk.
CCRIF policies cover “government loss” as a proportion of the full “national loss.” CCRIF was designed to provide funds within 14 days to assist governments with immediate needs following a catastrophe event. The exact payout amount is based not only on the modeled losses after a tropical cyclone, earthquake or rainfall event, but also on the terms of the policy selected by the country – the amount of risk transferred to CCRIF and the maximum payout limit.Regarding CCRIF policies and coverage selection, all countries are required to make three key decisions regarding their coverage selection. These are:
- The selection of an attachment point (the minimum severity of the event loss which gives rise to a payment and therefore is the loss value at which the policy contract is triggered)
- The selection of an exhaustion point (the severity of the event loss at or above which the maximum payment is triggered)
- The selection of the coverage limit (which is tied to the ceding percentage and dictates the premium cost)CCRIF policies are renewed on June 1st every year and last for one year. Each year, countries have the opportunity to consider their coverage characteristics (deductible and policy limit) and premium level for existing policies as well as obtaining coverage for new perils (for example excess rainfall). For more information on how to become a member, contact firstname.lastname@example.org.
Since its inception in 2007, CCRIF has made 36 payouts totaling USD 130,500,000 to 13 member governments. All payouts were available to be transferred to the respective governments within two weeks after the event and in three cases, interim payments were requested and made one week after the event.
On a rolling basis.