Haiti will receive a payout of a little over $20 million from the CCRIF SPC (formerly the Caribbean Catastrophe Risk Insurance Facility), after hurricane Matthew triggered the parametric insurance policy the country has in force.
Haiti took a deadly blow from hurricane Matthew, with the storm striking its far western tip with Category 4 winds. It’s now known that this has resulted in the deaths of at least 339 people and the displacement of many thousands more, as the tragic impact of the hurricane came to light as rescue workers reached the most affected areas.
The CCRIF SPC said that it is preparing to make a payout to the Government of Haiti of a little over $20 million, which is set to be the largest single payment ever made by the parametric disaster insurance facility.
Being a parametric insurance facility means that payouts can be made rapidly, as loss amounts are quickly calculated based on observed storm conditions and the facilities risk model. For Haiti that will be vital, as the rapid disbursement of funds will assist with recovery after hurricane Matthew.
This is set to be Haiti’s second payout from the CCRIF, after the Government of Haiti received $7.7 million for the impact of the 2010 earthquake.
At the time that payment was the first inflow of direct financial assistance received by Haiti after the event, demonstrating the important role parametric insurance triggers play in disaster risk financing and enabling response. The CCRIF funds were used in Haiti to cover salaries of key emergency personnel, as the CCRIF says “keeping the wheels of government turning.”
CCRIF CEO, Isaac Anthony, commented; “The CCRIF Board and Team extend our condolences to Haiti on the loss of life and extend our support to the Government and people of Haiti as they recover from this disaster.”
Following a conversation with the Government of Haiti this morning, he added; “We know that the Government welcomes this payment and is looking forward to beginning their recovery efforts.”
There is also a chance that Haiti and other countries in the Caribbean could receive payouts under parametric excess rainfall insurance policies that they have with the CCRIF.
The CCRIF explained; “The model for excess rainfall events requires a few days longer to calculate results compared with the wind-based tropical cyclone model and CCRIF will issue new information when that assessment is complete.”
Since its launch in 2007, the CCRIF made 15 payouts to 10 member governments amounting to $38.8 million, with all within 14 days of the catastrophe event occurring. With this the 16th payout the total will be approximately $58.8 million.
Earlier this week Barbados saw its parametric tropical cyclone insurance policy triggered by Matthew as well, when it was a tropical storm still. The country is set to receive $975,000 and could also stand to receive an excess rainfall payout too.
Read our previous articles on hurricane Matthew:
– As Matthew strikes Florida coast still difficult to forecast losses.
– S&P: 15 cat bonds at risk from hurricane Matthew. We add a few more.
– Matthew could drag down re/insurer returns, but fail to increase rates: Peel Hunt.
– Hurricane Matthew has potential to trigger cat bonds & ILS: RMS.
– Barbados to see $975k from CCRIF parametric payout for Matthew.
– Hurricane Matthew hits Bahamas, to intensify – Florida outlook worsens.
– Matthew could hike aggregate cat bond attachment probabilities: RMS.
– Hurricane Matthew threat awakens live cat market.
– Cat bonds in holding pattern, Florida on watch for hurricane Matthew.
– Florida, U.S. east coast now face risk of hurricane Matthew landfall.
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