St. Kitts & Nevis:--- The Government of Honduras received a payout of US$4,665,090 within 14 days of an excess rainfall event that affected that country over the period November 14 to 19, 2024. The Government of Honduras joined CCRIF in 2024, purchasing parametric insurance coverage for excess rainfall, effective June 1, 2024. On receipt of the payout, Minister of Finance Christian Duarte delivered the following statement, "On behalf of the Government led by our President Xiomara Castro, we express our gratitude to CCRIF for the disbursement received under our excess rainfall policy, which was triggered due to the impacts and damages associated with Tropical Storm Sara. Without a doubt, this type of instrument strengthens financial resilience and, compared to others, it provides us with the ability to respond more immediately during the humanitarian assistance and rehabilitation phase of an emergency. Additionally, it enables us to reach our affected population promptly and effectively”.
In speaking to the payout, CCRIF CEO Mr. Isaac Anthony stated, “I am pleased that Honduras took the decision to join CCRIF and I look forward to continuing to engage with the Government as it accesses CCRIF parametric insurance as an effective means of closing the protection gap and strengthening the country’s public financial management framework. Access to excess rainfall parametric insurance and accompanying payouts when the policy is triggered will allow the Government the flexibility to begin recovery efforts immediately following a natural disaster. Payouts received within 14 days of an event can be used to address the country’s most urgent needs, including helping vulnerable populations or rehabilitating critical infrastructure among other areas.”
According to reports, the rainfall event in Honduras significantly impacted roads, cutting off several communities and negatively impacting many people.
Since its inception in 2007, CCRIF has made 78 payouts, approximately US$390 million. Since the start of the 2024/2025 CCRIF Policy Year which began on June 1, three of CCRIF’s four Central American members have received payouts for excess rainfall events. Earlier in November, the Government of Panama received a payout from CCRIF totaling US$26.7 million. At the start of the policy year in June, the Government of Guatemala received a full payout under its excess rainfall policy of US$6,376,184 following heavy rains that occurred in that country over the period June 13 – 19, 2024. On the Caribbean side, since the start of the policy year, CCRIF has made 10 payouts totaling US$84.5 million following Hurricane Beryl. The Government of Grenada received US$44 million under its tropical cyclone, excess rainfall, and COAST (for fisheries) policies. The water and electric utility companies of Grenada received payouts totaling US$11.5 million. The Government of Jamaica received two payouts under its rainfall and tropical cyclone policies totaling US$26.6 million. Other governments – Trinidad & Tobago, St. Vincent and the Grenadines, and the Cayman Turtle Conservation and Education Centre (a government-owned tourist attraction)- also received payouts.
When CCRIF was established in 2007, it originally provided parametric insurance coverage for tropical cyclones and earthquakes to 16 Caribbean member governments. Today, CCRIF has 30 members – 19 Caribbean governments, 4 Central American governments, 3 Caribbean electric utility companies, 3 water utility companies, and 1 Caribbean tourist attraction. Today, CCRIF makes available six parametric insurance products – the original two as well as parametric insurance products for excess rainfall and for the water and electric utility sectors as well as for the fisheries industry.
Nicaragua was the first Central American country to join CCRIF when COSEFIN1 and CCRIF signed a memorandum of understanding in 2015 to enable COSEFIN members to gain access to CCRIF’s parametric insurance products. Panama joined in 2018, and Guatemala in 2019.
CCRIF CEO, speaking from the 13th Conference on Comprehensive Disaster Management (CDM) in St. Kitts and Nevis, stressed that, “We are committed to improving the resilience of the Caribbean and Central America to climate change and natural hazards. By this we mean increasing the ability of governments and key sectors to reduce the negative impacts of natural disasters on their economies, communities and citizens. We view comprehensive disaster risk management (CDRM) as an integral component of sustainable and resilient development and view parametric insurance as a critical part of countries’ CDRM strategies. This commitment is explicit in our vision - a leading global development insurer, providing disaster risk financing products and services to our members to improve lives and livelihoods, building resilience and advancing sustainable development agendas”.
1Council of Ministers of Finance of Central America, Panama and the Dominican Republic
