The Caribbean and Central American focused parametric catastrophe insurance facility CCRIF SPC (formerly the Caribbean Catastrophe Risk Insurance Facility) is set to further expand its remit as it is developing new parametric insurance products for the fisheries sector in the region.
According to reports, the CCRIF SPC is set to create a new suite of insurance products, based on the use of parametric triggers, targeted at the regional fisheries industry and its workforce.
Under development, according to discussion at a recent regional fisheries industry meeting held in the Cayman Islands, is a sovereign level parametric insurance policy for the fisheries industry, as well as a livelihood policy one targeted at fishermen themselves.
The sovereign policy will protect country-level income from fishing industries, with parametric triggers designed to pay-out when they face losses and loss of revenue due to inclement weather, storms and other weather or catastrophe related factors.
The parametric insurance policy for fishermen will be based on the CCRIF SPC’s existing livelihood protection policy (LPP), designed to compensate people when weather or catastrophe conditions impact their ability to earn a living.
It’s another example of how parametric triggers can be used to provide revenue or income protection insurance, or a type of business interruption coverage for industries in weather and disaster exposed regions of the world.
As the CCRIF SPC expands its suite of products the parametric risk pool will grow, resulting in an increasing need for reinsurance capacity to back it and a growing chance for the ILS and capital markets to participate.
With expansion into Central America, the addition of the livelihood product and excess rainfall covers and now a concerted effort to target vertical industry use-cases for parametric insurance, CCRIF SPC is certain to be back to the reinsurance market for more protection as these new initiatives scale up.