CCRIF provides $2.2m grant to St. Vincent and the Grenadines following volcano eruption
The Caribbean Catastrophe Risk Insurance Facility (CCRIF) has awarded a $2.2 million grant to the Government of St. Vincent and the Grenadines following the eruption of the La Soufrière Volcano.
The cash is intended to assist ongoing relief and recovery efforts in St. Vincent and the Grenadines. Although CCRIF does not currently offer cover for volcanic eruptions, as the dedicated disaster risk financing facility in the region, it said it “has a moral obligation to respond as best as possible to the needs of its members when confronted with such dire circumstances.”
St. Vincent and the Grenadines has been a member of CCRIF since the facility’s inception in 2007.
Last month, CCRIF also provided a $17,000 grant to the UWI Seismic Research Centre (SRC) to purchase new communication and ground deformation equipment to be added to those already deployed in St. Vincent.
CCRIF said it is also developing new parametric insurance products for drought and the agriculture sector and is considering providing coverage for volcanic eruptions. There are 19 live volcanoes in the Eastern Caribbean, with every island from Grenada to Saba subject to the direct threat of volcanic eruptions.
Isaac Anthony, chief executive officer of CCRIF, said: “This support to the Government has been made possible because CCRIF operates as a developmental insurance company, whereby our members have our commitment to support them in times of crises; seek out opportunities to enable them to enhance their resilience to current and future natural hazards; engage donors and collaborate on programmes designed to reduce vulnerability; negotiate the best prices for reinsurance; and advance disaster risk management and ecosystems-based solutions for the betterment of the peoples of the Caribbean and Central America in keeping with Agenda 2030 and the thrust to leave no one behind.”
CCRIF was the first multi-country risk pool in the world and was the first insurance instrument to successfully develop parametric policies for natural catastrophes. It aims to limit the financial impact of natural hazard events to Caribbean and Central American governments by providing short-term liquidity when a policy is triggered.
Since its inception it has made a total of 50 payouts to 16 of its member governments, totalling approximately $200 million on their tropical cyclone, earthquake and/or excess rainfall policies.
