Trinidad and Tobago Gets CCRIF Payment of $2.4M for August Heavy Rains, Flooding

The Caribbean Catastrophe Risk Insurance Facility has made a payout of approximately US$2.4 million to the government of Trinidad and Tobago following a rainfall event that occurred during August 18-20, 2021.

The heavy rainfall 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. This payout is being made on the excess rainfall policy for Trinidad.

Since 2017 when Trinidad and Tobago first purchased coverage for excess rainfall, the country has received payouts under its excess rainfall policy each year – five payouts totalling US$12.5 million.

This payout brings to 54 the total number of payouts CCRIF has made since its inception in 2007, totalling approximately US$245 million to 16 of its 23 members all paid within 14 days of the event using a parametric insurance model.

Earlier this month, CCRIF made its largest payout to date to Haiti of US$40 million following the devastating 7.2 earthquake that struck that country on August 14, significantly impacting the city of Les Cayes.

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.

CCRIF SPC is a segregated portfolio company and the world’s first regional fund utilising parametric insurance, giving member governments the opportunity to purchase earthquake, hurricane and excess rainfall catastrophe coverage. CCRIF was developed by the World Bank and with a grant from Japan. It was capitalized through contributions by Canada, the European Union, the World Bank, UK and France, the Caribbean Development Bank and the Ireland and Bermuda, as well as through membership fees paid by participating governments.