St. Maarten joins cat risk insurance facility

The island of St. Maarten joined the Caribbean Catastrophe Risk Insurance Facility SPC on Sept. 1 by purchasing parametric insurance coverage for tropical cyclones, earthquakes and excess rainfall, the organization said in a release Wednesday.

The Cayman Islands-based CCRIF now includes 20 countries, with 19 Caribbean governments and one Central American government, the statement said, adding that the British Virgin Islands and Montserrat also joined during the current policy year that began June 1.

The parametric coverage offered by CCRIF allows for payments against losses estimated in a catastrophe risk model, the statement said, providing capital for emergency relief, assistance to the affected population and to restore critical infrastructure and homes.

St. Maarten was hit hard by Hurricane Irma in September 2017, the statement said, with damages estimated at more than $1.8 billion by its government.

“We are pleased to welcome St. Maarten as a new member to CCRIF and look forward to working with the government of St. Maarten to strengthen its disaster risk-management framework in the face of increasing climate-related risks,” CCRIF CEO Isaac Anthony said in the statement.

CCRIF is a segregated portfolio company that helps limit the financial impact of catastrophic hurricanes, earthquakes and excess rainfall events to the Caribbean, the statement said. It was developed under the technical leadership of the World Bank and with a grant from Japan and capitalized through contributions.