Following the onslaught of hurricane Beryl, the Government of Grenada has now received its US $44 million payout from the CCRIF SPC after its parametric insurance was triggered, but in addition the islands utilities have received a further $11.5 million from separate parametric insurance arrangements.
The CCRIF SPC, formerly known as the Caribbean Catastrophe Risk Insurance Facility, has sprung into action to make triggering determinations and payouts very rapidly after major hurricane Beryl impacted the Caribbean.
We had already reported that Grenada was set to receive a payout of approximately US $44 million from the CCRIF SPC after hurricane Beryl triggered its parametric tropical cyclone, fisheries, and excess rainfall policies.
The CCRIF SPC made that payout last week, as its team met with senior political leaders from Grenada’s Government.
But, in total some US $55.6 million has been handed over, after some of the parametric insurance policies taken out by commercial entities on the island also benefited.
CCRIF began selling a parametric insurance product to utilities back in 2020, starting with electrical utilities and then bringing a water utility parametric insurance product in 2022 as well.
It is a way for CCRIF to increase scale and its usefulness to those in the Caribbean and Central America, while adding extra diversification to its risk pool, benefiting all members.
Both of the Grenada Electricity Services Limited (GRENLEC) and the National Water and Sewerage Authority (NAWASA) have received payouts under their parametric insurance products.
The electrical utility received just over US $9.3 million under a parametric wind policy and the water utility just over US $2.2 million from both wind and rainfall policies.
These are the first payouts made under parametric insurance policies for electric and water utilities since CCRIF launched those two products.
Other Caribbean nations have received payouts after hurricane Beryl and the CCRIF has updated this list to now include St. Vincent and the Grenadines, Trinidad and Tobago, Jamaica, and the Cayman Islands.
Jamaica is set to receive payouts from both its tropical cyclone and excess rainfall policies under the CCRIF.
As a result, since the formation of the CCRIF in 2007, it has now made 75 payouts totalling US$385,509,438 to 21 of its 30 members in the Caribbean and Central America.
All of those payouts have been made within 14 days, as CCRIF sticks to that timeline so it can disburse funding rapidly to aid in disaster recovery.
As we also reported, the CCRIF reinsurance program responded to hurricane Beryl to aid its ability to pay claims.
