CCRIF SPC (formerly the Caribbean Catastrophe Risk Insurance Facility) has signed a Memorandum of Understanding (MOU) with the Caribbean Regional Fisheries Mechanism (CRFM) to finalise its fisheries and aquaculture parametric insurance product for the region.
CCRIF has been working on developing a parametric insurance product to support the fisheries sector in the Caribbean since 2016 when the idea was first discussed.
Now, the MOU formalises the ambition to roll-out the parametric insurance, a sovereign insurance product backed by reinsurance capital as the other CCRIF product offerings are.
The product is to be rolled-out as part of the Caribbean Oceans and Aquaculture Sustainability Facility (COAST) initiative and the next stage is rolling out the COAST parametric insurance product, along with communications and education plans.
In addition, CCRIF under the MOU will also explore the creation of parametric microinsurance products for small businesses and those working in the Caribbean fisheries and aquaculture industry.
The goal is to develop climate-resilient fisheries and aquaculture industries in the region, with the parametric insurance set to insulate the sector against climate related damages, particularly from tropical storms.
CCRIF CEO, Isaac Anthony commented, “We are pleased that through this initiative, CCRIF will add a fisheries/aquaculture product to its current suite of parametric insurance policies for tropical cyclones, excess rainfall and earthquakes – thus expanding the portfolio of catastrophe insurance options for the countries in this region.”
The expansion of the CCRIF’s product range will also increase its risk pool and reinsurance program size.
The CCRIF leverages reinsurance capital to enable it to provide its sovereign parametric insurance products and has in the past tapped the capital markets through a catastrophe bond and also had collateralized participation in its reinsurance program, we understand.
“Fishers and fishing communities in the Caribbean are facing increasing threats and risks from climate change and related hazards,” added Milton Haughton, Executive Director of the CRFM. “We welcome this partnership between the CRFM and CCRIF. The insurance products which will become available will help enormously to reduce the risks and uncertainties, as well as improve resilience of our fishing communities by enabling them to recover and rebuild without delay after disaster events.”
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