Bermuda renews hurricane insurance scheme

Bermuda is one of the 16 members of the CCRIF SPC, which was formerly the Caribbean Catastrophe Risk Insurance Facility, which has renewed its hurricane policy.

The not-for-profit scheme offers members coverage against a range of natural disasters including excessive rainfall and earthquakes, though Bermuda has only participated in the hurricane coverage, which protects against wind and storm surge.

The US National Oceanic and Atmospheric Administration (NOAA) predicts there will be below-average number of hurricanes this season, which ends on November 30. However this still means the likelihood of 11 named storms in the Atlantic area, as well as three to six hurricanes and up to two major hurricanes.

Since CCRIF was set up in 2007, it has made 12 payments totalling approximately $35.6 million to eight member states.

The Caribbean received payments from the CCRIF in the wake of Hurricane Gonzalo last year, which also hit Bermuda, however the Island’s policy did not reach the required trigger for compensation.