The Caribbean Catastrophe Risk Insurance Facility (CCRIF), the non-profit multi-country risk pooling facility who provide parametric disaster cover to Caribbean countries, will be launching its long-awaited excess rainfall product in June according to an article in Business News Americas. The development of the parametric rainfall insurance policy was delayed due to technical issues and a lack of decent historical weather data.
When we last wrote about this excess rainfall product in November it was slated for launch at year-end but now, according to the article, it will launch in time for the CCRIF policy renewal in June.
The launch of the rainfall product will allow the CCRIF to expand its coverage to two new countries, Guyana and Suriname. Neither of these countries are exposed to hurricane and earthquake, perils that the CCRIF’s other parametric products cover, but both are heavily exposed to excess rainfall.
It’s uncertain how the excess rainfall product will be structured at this time as it was originally supposed to be a pure parametric product but the problems with historical weather data for the region could have changed that to an index insurance product or a weather hedge. We’ll let you know when we hear more.