The sixteen members of the Caribbean Catastrophe Risk Insurance Facility (CCRIF) have all renewed their policies in time for the hurricane season this year. With forecasters predicting an 85% chance of an above average Atlantic hurricane season this year it’s now surprise they all took advantage of this cover.
It is surprising however that most countries opted not to increase their hurricane risk cover under the facility, leaving the premiums at levels paid last year. Twelve of the countries did increase their premiums for earthquake cover due to the increased appreciation of this risk following the severe quake in Haiti.
For the 2010-2011 year policy pricing has been reduced by the CCRIF to make cover more affordable for the schemes members. Another change this year is the improved risk model being used which now explicitly includes losses due to risks such as storm surge. This will please member countries as it was previously felt that the cover was lacking in some areas. The CCRIF say that an excess rainfall product should be available by year end which will also please members. Anything that can be done to broaden the coverage to protect the members against storms which do not meet tropical storm status but still cause widespread losses and damage will be well received.
Read the full press release from the CCRIF here.