Excessive rains have triggered a payout of $4.665 million from the Caribbean Catastrophe Risk Insurance Facility (CCRIF) within two weeks for The Government of Honduras.
The event took place from 14th to 19th of November, significantly impacting roads and cutting off several communities.
Honduras joined the CCRIF in 2024, purchasing parametric insurance coverage for excess rainfall, effective from June 1st, 2024.
Since its inception in 2007, CCRIF has made 78 payouts of approximately $390 million. Since the start of the 2024/2025 CCRIF Policy Year, which began on June 1st, three of CCRIF’s four Central American members have received payouts for excess rainfall events.
Christian Duarte, Minister of Finance, commented, “On behalf of the Government led by our President Xiomara Castro, we express our gratitude to CCRIF for the disbursement received under our excess rainfall policy, which was triggered due to the impacts and damages associated with Tropical Storm Sara.
“Without a doubt, this type of instrument strengthens financial resilience and, compared to others, it provides us with the ability to respond more immediately during the humanitarian assistance and rehabilitation phase of an emergency. Additionally, it enables us to reach our affected population promptly and effectively.”
Isaac Anthony, Chief Executive Officer of CCRIF, added, “I am pleased that Honduras took the decision to join CCRIF and I look forward to continuing to engage with the Government as it accesses CCRIF parametric insurance as an effective means of closing the protection gap and strengthening the country’s public financial management framework.
“Access to excess rainfall parametric insurance and accompanying payouts when the policy is triggered will allow the Government the flexibility to begin recovery efforts immediately following a natural disaster. Payouts received within 14 days of an event can be used to address the country’s most urgent needs, including helping vulnerable populations or rehabilitating critical infrastructure among other areas.”
In November, the Government of Panama received a payout of $26.7 million. At the start of the policy year in June, the Government of Guatemala received a full payout under its excess rainfall policy of $6.376 million due to heavy rains from June 13th to 19th.
On the Caribbean side, since the start of the policy year, CCRIF has made 10 payouts totalling $84.5 million following Hurricane Beryl.
The Government of Grenada received $44 million under its tropical cyclone, excess rainfall and COAST (for fisheries) policies, while the water and electric utility companies received payouts totalling $11.5 million.
Meanwhile, The Government of Jamaica received two payouts under its rainfall and tropical cyclone policies of approximately $26.6 million.
Other governments – Trinidad & Tobago, and St. Vincent and the Grenadines as well as the Cayman Turtle Conservation and Education Centre (a government-owned tourist attraction) also received payouts.
Anthony, speaking from the 13th Conference on Comprehensive Disaster Management (CDM) in St. Kitts and Nevis, said, “We are committed to improving the resilience of the Caribbean and Central America to climate change and natural hazards. By this we mean increasing the ability of governments and key sectors to reduce the negative impacts of natural disasters on their economies, communities and citizens. We view comprehensive disaster risk management (CDRM) as an integral component of sustainable and resilient development and view parametric insurance as a critical part of countries’ CDRM strategies.
“This commitment is explicit in our vision – a leading global development insurer, providing disaster risk financing products and services to our members to improve lives and livelihoods, building resilience and advancing sustainable development agendas.”
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Publish date : 2024-12-09 00:30:00
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