In the aftermath of Tropical Storm Philippe, CCRIF SPC made two payouts totaling US$3.4 million to the governments of Antigua and Barbuda and the British Virgin Islands.
Philippe caused heavy rains and flooding in both countries when it landed on Antigua and Barbuda on October 2nd and passed near the British Virgin Islands on October 4th.
These payouts were made on the countries’ parametric insurance policies for Excess Rainfall, with Antigua and Barbuda receiving US$2,880,424 and the British Virgin Islands receiving US$552,297. This was the first payout from CCRIF to the British Virgin Islands.
The government of Antigua and Barbuda has previously received two payouts from CCRIF, one following Tropical Cyclone Irma in 2017 and another after an excess rainfall event in 2022.
All CCRIF payouts are made within 14 days of the event. Speaking to the governments of Antigua and Barbuda and the British Virgin Islands about the confirmed payouts, CCRIF CEO Mr. Isaac Anthony reiterated that each country can use its payout to address urgent priorities.
Mr. Anthony advises all countries in the region that investing in CCRIF’s catastrophe risk insurance each year is an important part of their comprehensive disaster risk management strategies.
CCRIF payouts help to close the protection gap, reduce budget volatilities associated with exogenous shocks, and allow governments to address the country’s most urgent needs. Governments can also implement activities to increase resilience against future hazard events, build back better, and enhance social protection systems to become more shock-responsive.
Since its inception in 2007, CCRIF has made 62 payouts to 17 of its 26 members, bringing the total payouts to US$265 million.
Throughout the years, CCRIF member governments have used payouts to address immediate needs post-disaster, from providing food, water, and medicines to the most vulnerable, to clearing roads and fixing bridges.
Payouts have also been used for repairing and improving critical infrastructure such as schools and water treatment plants and supporting sectors such as tourism and agriculture.
CCRIF is closely monitoring the hurricane season, which has produced 91 named storm days – the 8th most through October 19th on record, according to Philip Ktotzback from Colorado State University.
CCRIF is watching Tropical Storm Tammy, which is forecasted to impact several CCRIF member countries this weekend, including Antigua and Barbuda, Montserrat, St. Kitts and Nevis, Anguilla, and St. Maarten.
Unlike traditional indemnity insurance policies, CCRIF’s parametric insurance policies make payments based on the intensity of a natural hazard event, the exposure or assets affected by the event, and the amount of loss caused by the event, calculated in a pre-agreed model.
Thus, CCRIF does not need to wait for countries to make claims based on an on-the-ground assessment of loss and damage and can disburse funds quickly to members if their policies are triggered.