The CCRIF SPC (previously often called the Caribbean Disaster Threat Insurance coverage Facility) has paid the Authorities of Panama US $26.7 million after the international locations parametric rainfall insurance coverage coverage was triggered following a current extreme occasion, which takes payouts made for the present coverage 12 months to nearly US $118 million.
The rainfall occasion affected Panama between October thirty first and November 4th 2024, inflicting landslides, flooding, fallen timber, the collapse of some bridges and lack of crops whereas 1,500 individuals have been negatively affected, and 11 individuals misplaced their lives on account of heavy rains this month.
As with each parametric insurance coverage payout CCRIF has made, the funds have been transferred to the Authorities of Panama inside 14 days of the rainfall occasion.
Francisco Álvarez, Director on the Directorate of Investments, Concessions and State Dangers (DICRE) of Panama highlighted the significance of the parametric insurance coverage.
Panama sees its CCRIF protection as a part of a nationwide technique to guard the nation in opposition to pure disasters, which incorporates catastrophe danger financing instruments for each danger switch and danger retention to financially shield the nation’s economic system.
Panama has contingent credit score strains from the World Financial institution and the Inter-American Improvement Financial institution as effectively is its two CCRIF parametric insurance coverage insurance policies, one for extra rainfall and one coverage for earthquakes.
Álvarez acknowledged, “Parametric insurance coverage permits the State to reply shortly to emergencies attributable to phenomena resembling extra rainfall, mitigating their fiscal and social affect.”
The CCRIF has now made 13 parametric insurance coverage payouts this coverage 12 months, which began on June 1st 2024, with one payout of US $6.4 million to Guatemala after a rainfall occasion in June and 10 payouts totalling US $84.5 million following Hurricane Beryl.
Since launching in 2007, CCRIF has made 77 payouts, totalling US $385.2 million, whereas its members now sometimes cede over US $1 billion of danger to the parametric insurance coverage danger pooling facility, with the overall growing 10% for the present coverage 12 months.
