Trinidad and Tobago to Get Payment Following August Rain Damage
GRAND CAYMAN, Cayman Islands – The Caribbean Catastrophic Risk Insurance Facility (CCRIF SPC) Friday said it has made a payout of approximately US$2.4 million to the Trinidad and Tobago government following a rainfall event that occurred last month.
It said that the August 18-20 rains caused by an Inter-Tropical Convergence Zone, resulted in flooding and landslides across southern and western Trinidad, making several roads impassable.
Due to different hazard risk profiles for each of the islands in the twin-island republic, the government purchases two separate CCRIF policies for excess rainfall – one for Trinidad and one for Tobago, the CCRIF said, adding that this payout is being made on the excess rainfall policy for Trinidad.
It said that since the oil rich twin island republic purchased coverage for excess rainfall in 2017, the country has received payouts under its excess rainfall policy each year, totaling US$12.5 million.
Trinidad and Tobago also has cover for tropical cyclones and for earthquakes.
CCRIF said that previous payouts to Trinidad and Tobago for excess rainfall have been made for example, for the periods of heavy rainfall between in 2017 and 2018 with the government receiving a total of US$9.5 million for these two events.
CCRIF said that the payout to Trinidad and Tobago brings to 54 the total number of payments it has made since its inception in 2007, totaling approximately US$245 million to 16 of its 23 members.
It said that all the payments were made within 14 days of the event and that some governments have received portions of their payouts within five tro seven days of the event based on their requests for an advance.
Last month, CCRIF made its largest payout to date when it paid US$40 million to Haiti following the devastating 7.2 earthquake that struck that French-speaking Caribbean country on August 14, killing more than 2,200 people.
“While the cost of rebuilding following natural disasters could be overwhelmingly high, governments purchase CCRIF’s insurance for an early injection of quick liquidity or financial protection to help mobilize resources in the immediate aftermath of a disaster, while buffering the long‐term fiscal impact of disasters.
“Operating as a development insurance company, CCRIF products and services are designed to enhance the overall developmental prospects of its members,” said the CCRIF, a segregated portfolio company, owned, operated and registered in the Caribbean that limits the financial impact of catastrophic hurricanes, earthquakes and excess rainfall events to Caribbean and Central American governments.
