News, News-buzz

GOSL – 2020 Atlantic Hurricane Season, Catastrophe Insurance Coverage

The Government of Saint Lucia has renewed all its parametric insurance coverage for Tropical Cyclone, Excess Rainfall, Earthquake, and the fisheries sector in preparation for the 2020 Atlantic Hurricane Season with the Caribbean Catastrophe Risk Insurance Facility (CCRIF).

This financial year the Government of Saint Lucia was privileged to receive substantial support towards the payment of its premium. Premium support was provided by:

1.    CCRIF’s 5 percent discount on gross premium for Tropical Cyclone and a further discount of 15% on additional coverage purchased;

2.    The European Union through the EU Regional Building Facility, which provided a 26 percent discount on total gross premium in addition to financing an increase in the policy coverage; and

3.    The Canada-CARICOM Climate Adaptation Fund, which provided funding for CCRIF SPC premiums to eligible CARICOM countries for the next two fiscal years.

The Government of Saint Lucia would like to thank CCRIF, the European Union, and the Canadian Government for their efforts and commitment to assisting its members during this very difficult and challenging period.

CCRIF was formed in 2007 as the first multi-country risk pool in the world and has made 41 payouts totaling US$152 million to 13 member governments on their tropical cyclone, earthquake, and excess rainfall policies. It was designed as a regional catastrophe fund for Caribbean governments to limit the financial impact of devastating hurricanes and earthquakes. CCRIF currently offers earthquakes, tropical cyclones, excess rainfall, and a product for the fisheries sector called COAST (Caribbean Oceans and Aquaculture Sustainability Facility).

The objective of the COAST Product is to reduce the risk that climate change poses to food security in the fisheries sector and to mitigate climate change impacts on sustainable food production. The COAST Product which is financed by the Government of the United States, World Bank, and the Food and Agriculture Organization and in partnership with the Caribbean Regional Fisheries Mechanism has been developed to provide financial protection for the fisheries sector. The COAST Product also provides direct benefits to fisherfolk in the form of cash payouts once the policy is triggered.

Leave a Reply

Your email address will not be published. Required fields are marked *