CCRIF SPC, the regional parametric risk pool for the Caribbean and Central America, is set to make a payout of US $17.4 million to the government of Panama after the recent magnitude 7.7 earthquake triggered its parametric disaster insurance protection under the facility.
This earthquake struck Panama on October 9th and CCRIF explained that based on its SPHERA earthquake model, it estimated peak ground acceleration of up to 0.5 g in the country, the only CCRIF member to experience shaking above the model’s 0.03 g reporting threshold.
The modelled losses exceeded the parametric trigger of the earthquake policy, activating the payout process for the government of Panama.
The earthquake caused damage to homes, schools, hospitals, public buildings, and roads in various provinces across the country, while a preliminary assessment reports 656 affected schools.
The parametric insurance payout will be made within 14 days of the quake, as the CCRIF sticks to its rapid disbursement of funds promise.
CCRIF Chief Executive Officer, Isaac Anthony, commented, “Our thoughts are with the people of Panama, and especially with the families and communities affected by this earthquake. This payout will give the Government immediate liquidity to support its response at the time it is most needed.
“Panama’s decision to secure its CCRIF earthquake coverage through the Fondo de Ahorro de Panamá is a strong example of how parametric insurance can work alongside national savings and stabilization mechanisms as part of a layered approach to financing disaster risk.”
Panama has been a beneficiary of parametric disaster insurance protection through the CCRIF since 2018.
Previously the country has received 3 payouts from CCRIF, for excess rainfall caused by Hurricane Eta in 2020 and an exceptional rain events in 2024, which together amounted to approximately US $29 million. With this earthquake payout, it will bring total parametric payouts to Panama to approximately US $47 million from the facility.
Adding this to its payout tally, CCRIF said it will have made 83 payouts to members since its inception in 2007, totalling over US $500 million, with all of them made within 14 days of the event.
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