CCRIF SPC announced that it\u00a0will make a payout of US$70.8 million to the Government of Jamaica\u00a0following the passage of Hurricane Melissa.\u00a0This marks the largest single payout in CCRIF\u2019s history\u00a0and is a powerful demonstration of the organization\u2019s parametric insurance model.\u00a0Subject to final model verification,\u00a0this payout will be made within 14 days, consistent with CCRIF\u2019s commitment to speed, transparency, and fiscal responsiveness.<\/p>\n
In announcing the payout, CCRIF CEO, Mr. Isaac Anthony, stated:\u00a0\u201cThis payout to Jamaica is not just a financial transaction, it is a reaffirmation of CCRIF\u2019s mission to stand with our members in their most difficult moments. On behalf of the CCRIF Board, Management, and Team, I extend our heartfelt condolences to the people of Jamaica. We are proud to support the Government\u2019s swift response and recovery efforts, and we remain committed to helping build a more resilient and secure future for all.\u201d<\/p>\n
In addition to the tropical cyclone payout, the Government of Jamaica is expected to receive a second payout under its excess rainfall policy, pending final model calculations. Excess rainfall assessments typically take a few days longer than tropical cyclone evaluations due to the complexity of rainfall distribution and localized impacts. CCRIF will confirm the outcome for this potentially additional payout once the modelled loss value is fully validated.<\/p>\n
Jamaica, a founding member of CCRIF at its establishment in 2007, has long integrated CCRIF\u2019s parametric insurance products \u2013- covering tropical cyclones, excess rainfall, and earthquakes \u2013 into its comprehensive disaster risk financing strategy and risk layering framework. This strategic foresight has enabled Jamaica to be certain of the availability of the access to liquidity just three days after Hurricane Melissa crossed the island, with CCRIF\u2019s tropical cyclone policy triggering automatically based on modelled loss values.<\/p>\n
Within the context of Jamaica\u2019s dynamic disaster risk financing framework, CCRIF stands ready to support the Government in expanding its coverage portfolio by considering additional products from CCRIF for the water and electric utility sectors, as well as the fisheries sector. This will further enhance the government\u2019s financial protection strategy and ensure continuity of essential services in the face of future climate-related shocks. The government currently has coverage from CCRIF for tropical cyclone, excess rainfall and earthquake.<\/p>\n
CCRIF\u2019s parametric insurance policies are designed to respond to the intensity of a hazard event, considering the assets exposed, and the modelled losses based on the organization\u2019s state-of-the-art parametric insurance models, without requiring on-the-ground damage assessments.<\/p>\n
This US$70.8 million\/J$11.4 billion marks the fourth payout to Jamaica, bringing the country\u2019s total value of payouts from CCRIF to US$100.9 million.\u00a0In 2024, Jamaica received US$26.6 million following Hurricane Beryl, and in 2020, a payout was made after Tropical Cyclones Zeta and Eta.<\/p>\n
Since its inception, CCRIF has made 81 payouts totalling US$462 million to member governments (inclusive of this current payout).\u00a0 These payouts enable countries to address urgent post-disaster needs, from providing food, water, shelter and medicines for vulnerable populations, to undertaking infrastructure repairs and supporting the recovery of the agriculture, tourism, and education sectors as well as repairs to public utilities. Payouts have also helped governments to stabilize public finances, protect development gains, and support vulnerable populations.<\/p>\n
CCRIF\u2019s parametric insurance model, now globally recognized has proven to be both technically sound and economically transformative. Annual coverage has been exceeding US$1 billion since 2021 and now stands at US$1.44 billion.\u00a0CCRIF operates the largest parametric insurance programme in the world, supported by proprietary models, strategic partnerships, and a commitment to innovation.<\/p>\n