CCRIF/Swiss Re offer Caribbean Governments coverage in opposition to excess Rainfall

The Caribbean catastrophe chance insurance Facility (CCRIF) announced that 8 of its participants have become the primary international locations to purchase its excess rainfall coverage coverage – for the 2014/2015 policy 12 months.

CCRIF developed the program in conjunction with Swiss Re. It stated the “excess rainfall product is aimed commonly at extreme excessive rainfall events of short duration (some hours to three days), whether they manifest at some point of a tropical cyclone (storm) or now not.

“Like CCRIF’s tropical cyclone and earthquake coverage, the excess rainfall product is parametric and estimates the affects of heavy rain the use of satellite rainfall information from the Tropical Rainfall size task (TRMM) and publicity from CCRIF’s danger estimation database. because the excess rainfall product is parametric, a payout may be made fast (inside 14 days) after a rain occasion that triggers a rustic’s policy, without looking forward to time-ingesting damage and loss assessments at the floor.”

CCRIF CEO Isaac Anthony commented: “the brand new excess rainfall product has been eagerly awaited through Caribbean governments as we all realize that big harm in the area is because of rainfall and flooding. This product enhances CCRIF’s storm coverage which determines losses based totally on wind and storm surge. We commend our eight participants for taking the initiative and purchasing this ground-breaking product and wish that other countries inside the location will observe.”

Martyn Parker, the Chairman of Swiss Re’s worldwide Partnerships, defined: “Securing excess rainfall coverage safety demonstrates that Caribbean international locations are taking a proactive method to control the contingent risks posed by means of weather exchange. Swiss Re is proud to support them of their efforts to make sure fiscal balance after a catastrophe.”

The CCRIF stated that the international locations electing the insurance might ” now be capable of reply better to an occasion including the trough that introduced heavy rains to the japanese Caribbean in December ultimate year, which ended in loss of life, sizeable damage to infrastructure and huge-spread financial disruption. The extra rainfall product is impartial of the tropical cyclone product and if both regulations are caused by using an event then both payouts are due.

“considering the economic demanding situations that many of our individuals face and their increasing ranges of vulnerability, CCRIF continues to work closer to lowering the general top class cost to participants.”

For the 2014-2015 policy years CCRIF stated it “presented two one-off premium discount options due to a 3rd successive yr wherein not one of the regulations held with the aid of member nations have been precipitated via an event. the two discount alternatives were: a 25 percent cut price on tropical cyclone and earthquake coverage top class if no extra rainfall policy is bought; and up to a 50 percent bargain if applied to an excess rainfall coverage.

“also, as accomplished formerly, for 2014/2015 guidelines, CCRIF allowed 50 percentage of the overall top class to be held as paid-in Participation price (the one-time fee paid when a rustic joins the ability), with the extra consequently being available to co-fund premium, imparting an opportunity to in addition reduce contemporary expenditure on policy premiums. moreover, countries that have now not already carried out so can exercising the choice to reduce their attachment point to a ten-year go back length for tropical cyclones. this will bring about insurance being secured for activities that arise extra regularly than became formerly to be had.”