The Caribbean Catastrophe Risk Insurance Facility (CCRIF) has announced that for the policy year 2022/23, which began on June 1, member countries ceded more than US$1.2 billion in coverage.

This represented an increase of 10 per cent over the previous year for earthquake, tropical cyclone and excess rainfall policies. According to the CCRIF, 13 member governments increased their coverage compared with the 2021/22 policy year.

The CCRIF reports that for this policy year, it has offered member countries the option to reduce the cost of their policy premiums or to increase coverage or both by approximately 11 per cent for tropical cyclone policies and 24 per cent for excess rainfall policies for the Caribbean and 15 per cent to 30 per cent to Central America.

Demand for increased insurance coverage

CCRIF says, “The renewal and demand for increased coverage by members illustrate that countries continue to recognise the critical importance of financially protecting their economies against natural disasters, especially in the context of the increasing frequency and intensity of natural hazards.” 

The European Union (EU), through Germany’s KfW Development Bank and Federal Ministry of Economic Cooperation and Development (BMZ), and the US Treasury Department, through the Central America and the Caribbean Catastrophe Risk Insurance Programme, have made available additional grant funding to CCRIF SPC to support Central American members. 

The CCRIF reports that for this policy year, it has offered member countries the option to reduce the cost of their policy premiums or to increase coverage or both by approximately 11 per cent for tropical cyclone policies and 24 per cent for excess rainfall policies for the Caribbean and 15 to 30 per cent to Central America. 

The World Bank, in partnership with the EU through its Caribbean Regional Resilience Building facility (CRRB) managed by the Global Facility for Disaster Reduction and Recovery, made available additional grant funding to CCRIF to support eligible Caribbean countries.