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Caribbean Catastrophe Risk Insurance Facility (CCRIF)

Cul-de-Sac River St Lucia after Hurricane Tomas 2010. © Trionne Phillips, AusAID: Department of Foreign Affairs and Trade's photostream CC BY 2.0

Caribbean

The World Bank recently assisted CARICOM in establishing the Caribbean Catastrophe Risk Insurance Facility (CCRIF), a joint reserve facility that offers liquidity coverage, similar to business interruption insurance, to 16 Caribbean countries exposed to earthquakes and hurricanes.

The CCRIF was capitalized with support from participating countries and donor partners. It combines the benefits of pooled reserves with the capacity of the international financial markets.

The Facility became operational on June 1, 2007, and can count on its own reserves of over US$90 million and reinsurance of US$110 million. This provides the Facility with US$200 million of risk capital at very competitive rates.

The reinsurance strategy of the CCRIF is designed to sustain a series of major natural disaster events (each with a probability of occurrence lower than 0.1 percent), achieving a higher level of resilience than international standards.

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