Information reaching us is that the Government of Grenada has renewed its insurance policies with the Caribbean Catastrophic Risk Insurance Facility – Segregated Portfolio Company (CCRIF SPC) for the 2023 Hurricane Season.
Caribbean Catastrophic Risk Insurance Facility – Segregated Portfolio Company provides parametric insurance coverage against natural hazards such as hurricanes and earthquakes, and has been operating since 2007, with Grenada being a founding member.
Grenada currently holds four policies- Tropical Cyclone, Excess Rainfall, Earthquake and the Caribbean Ocean and Aquaculture Sustainability Facility (COAST).
The Tropical Cyclone, Excess Rainfall and Earthquake policies will ensure a financial payout to the Government to help in the recovery process, should Grenada experience an event severe enough to trigger the policy.
In the case of the COAST policy, coverage is provided to fisherfolk against losses due to “bad weather” and direct damage to fishing vessels, equipment and infrastructure, caused by tropical cyclones (wind and storm surge)
REPORT:
COAST provides ‘livelihood protection” payments directly to fisher-folk if the policy is triggered.
With the existing policies which expired May 31, 2023, the Government has elected to renew coverage effective June 1, 2023 for one year with Gross Premiums amounting to 1.5 million US dollars.
Through support from the European Union, the World Bank and CCRIF SPC, Grenada was able to secure discounts on its Tropical Cyclone and Excess Rainfall policies resulting in total Net Premiums of 1.2 million US dollars.
The Government expresses its appreciation for the premium support provided and encourages other agencies to provide similar assistance to CARICOM countries, which are disproportionately affected by severe hazards due to the effects of climate change.
It’s understood that with the policy renewal, Grenada can receive a maximum payout of 42.3 million US dollars in the event of a Tropical Cyclone severe enough to trigger the policy.
CCRIF Insurance coverage is an integral part of Government’s Disaster Risk Management Strategy to cater for largely catastrophic events.
