The CCRIF SPC (formerly known as the Caribbean Catastrophic Risk Insurance Facility) is set to extend discounts on premiums and other coverage benefits to certain of its members with the support of the World Bank, to assist them in continuing with their parametric disaster insurance protection, even despite the fiscal hits from Covid-19.
This move from the CCRIF follows the recent news we reported that certain African countries are also going to benefit from premium support, to help them continue their parametric drought insurance protection under the African Risk Capacity (ARC).
With the Covid-19 pandemic impacting some of the poorest countries in the world the most, on a fiscal level, funding for disaster risk transfer has become a challenge for certain governments to achieve.
As a result, it’s encouraging to see these cases where government’s are going to be helped to continue with their parametric disaster insurance protection.
The CCCRIF said that the member countries of the Council of Ministers of Finance of Central America, Panama, and the Dominican Republic (COSEFIN) will receive assistance for their CCRIF SPC parametric insurance policies for policy year 2020/21, as part of its response to the COVID-19 pandemic.
Funded by a Multi-Donor Trust Fund (MDTF), administered by the World Bank, the countries will be able to choose from a 50% reduction in premium costs on their parametric insurance policies, or a mutually agreed increase in CCRIF coverage at no additional cost, or a combination of both.
Already, Guatemala, Nicaragua, and Panama have renewed their parametric policies for 2020/2021 and will be increasing their coverage as a result of these benefits, while other countries in the COSEFIN group are eligible to take advantage of these benefits if they joined the CCRIF this year.
CCRIF CEO, Mr. Isaac Anthony commented, “I am encouraged by the fact that our Central American members have not only renewed their policies but also will be increasing their coverage, indicating that they recognize the important role of catastrophe risk insurance in reducing budget volatility after natural disasters.”
Recent studies have shown that many countries face the potential for compound shocks caused by natural disasters that occur at the same time as the Covid-19 pandemic, therefore it is vital to continue with disaster risk financing initiatives and so support to pay premiums is one way this continuity can be achieved.
The Central America and Caribbean Catastrophe Risk Insurance Program Multi-Donor Trust Fund (MDTF), administered by the World Bank, continues to support the expansion of CCRIF SPC’s products, services, and membership in Central America.