AN INITIAL US$4 million (EC$10.73m) payout will be made to Anguilla by the Caribbean Catastrophe Risk Insurance Facility (CCRIF) as a result of Tropical Cyclone Earl, which passed close to that island and others in the northeastern Caribbean as a major hurricane last Monday.
Early reports indicate that Earl blew the roofs off of buildings and downed many power lines in the British overseas territory. Severe beach erosion and flooding have also impacted the island.
Antigua and Barbuda and St Kitts and Nevis, both also covered by CCRIF policies, were less severely affected, though some flooding and coastal damage has been reported.
CCRIF, operating out of Grand Cayman, is a risk-pooling facility, owned, operated and registered in the Caribbean for regional governments, and is designed to limit the financial impact of catastrophic hurricanes and earthquakes by quickly providing short-term liquidity when a policy is triggered.
It is the world’s first and, to date, only regional fund utilising parametric insurance, giving Caribbean governments the unique opportunity to purchase earthquake and hurricane catastrophe coverage with lowest-possible pricing.
Anguilla has both tropical cyclone and earthquake policies with CCRIF as part of its disaster risk management strategy.
The storm was of sufficient strength to trigger the hurricane coverage. Based on preliminary calculations undertaken using CCRIF’s catastrophe loss model and the most recent data from the National Hurricane Centre, Anguilla will receive just over US$4 million after 14 days, during which time a final calculation of loss and payout will be made.
CCRIF is working with regional partners, particularly the Caribbean Institute for Meteorology and Hydrology, and local disaster management officials in Anguilla to collect on-the-ground information relevant to hazard and risk assessment.
CCRIF said it was hopeful that the rapid payment of funds under Anguilla’s policy would help the government and people of Anguilla in addressing immediate needs as they began contemplating the rebuilding process. (AB)
