27 • Continued from previous page cooperative arrangements and mechanisms to facilitate the development of a culture of disaster loss reduction; and 6. Coordinating the establishment, enhancement and maintenance of adequate emergency disaster response capabilities among the PSs. SOURCE: The Caribbean Disaster Emergency Management Agency (CDEMA) THE CARIBBEAN CATASTROPHIC RISK INSURANCE FACILITY (CCRIF SPC) CCRIF SPC 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 utilising parametric insurance, giving member governments the unique opportunity to purchase earthquake, hurricane and excess rainfall catastrophe coverage with lowestpossible pricing. In 2007, the CCRIF was formed as the first multi-country risk pool in the world and was the first insurance instrument to successfully develop parametric policies backed by both traditional and capital markets. It was designed as a regional catastrophe fund for Caribbean governments to limit the financial impact of devastating hurricanes and earthquakes by quickly providing financial liquidity when a policy is triggered. In 2014, the facility was restructured into a segregated portfolio company (SPC) to facilitate expansion into new products and geographic areas and is now named CCRIF SPC. The new structure, in which products are offered through a number of segregated portfolios, allows for total segregation of risk. In April 2015, CCRIF signed an MOU with COSEFIN — the Council of Ministers of Finance of Central America, Panama and the Dominican Republic — to enable Central American countries to formally join the Facility. CCRIF SPC is registered in the Cayman Islands and operates as a virtual organisation, supported by a network of service providers covering the areas of risk management, risk modelling, captive management, reinsurance, reinsurance brokerage, asset management, technical assistance, corporate communications and information technology. CCRIF offers earthquake, tropical cyclone and excess rainfall policies to Caribbean and Central American governments. In July 2019, the Facility, in collaboration with the World Bank and the U.S. State Department, introduced coverage for the fisheries sector for two member countries – Saint Lucia and Grenada. In October 2020, CCRIF introduced coverage for electric utilities. CCRIF helps to mitigate the short-term cash flow problems small developing economies suffer after major natural disasters. CCRIF’s parametric insurance mechanism allows it to provide rapid payouts to help members finance their initial disaster response and maintain basic government functions after a catastrophic event. SOURCE: The Caribbean Catastrophic Risk Insurance Facility Source: HWN.org accessed June 24th, 2024
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