The Caribbean Catastrophe Risk Insurance Facility (CCRIF) ann
ounced it will make a payout of US$70.8 million to the government of Jamaica to cover damages from Hurricane Melissa.
This marks the largest single payout in the history of CCRIF, the Cayman Islands-based parametric catastrophe facility.
Subject to final model verification, this payout will be made within 14 days.
“This payout to Jamaica is not just a financial transaction, it is a reaffirmation of CCRIF’s mission to stand with our members in their most difficult moments,” commented CCRIF CEO Isaac Anthony.
Read more: Jamaica Catastrophe Bond Has Now Triggered, Government Says
“On behalf of the CCRIF board, management, and team, I extend our heartfelt condolences to the people of Jamaica. We are proud to support the government’s swi
ft response and recovery efforts, and we remain committed to helping build a more resilient and secure future for all,” Anthony added.
In addition to the tropical cyclone payout, the government of Jamaica is expected to receive a second payout un
der its excess rainfall policy, pending final model calculations. Excess rainfall assessments typically take a few days longer than tropical cyclone evaluations d
ue to the complexity of rainfall distribution and localized impacts. CCRIF said it will confirm the outcome for this
otentially additional payout once the modeled loss value is fully validated.
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A founding member of CCRIF at its establishment in 2007, Jamaica has long integrated CCRIF’s parametric ins
urance products – covering tropical cyclones, excess rainfall, and earthquakes – into its comprehensive disaster risk financing strategy and risk layering framework.
This foresight enabled Jamaica to be certain of the availability of the access to liquidity just three days after Hurricane Melissa crossed the island, with CCRIF’s tro
pical cyclone policy triggering automatically based on modeled loss values, CCRIF said.
This US$70.8 million payout marks the fourth to Jamaica since the CCRIF’s inception, bringing the country’s total v
alue of payouts from CCRIF to US$100.9 million. In 2024, Jamaica received US$26.6 million following Hurricane Beryl, and in 2020, a payout was made after Tropical Cyclones Zeta and Eta.
Since its inception, CCRIF has made 81 payouts totaling US$462 million to member governments (inclusive of this current payout).
These payouts enable countries to address urgent post-disaster needs, from providing food, water, shelter and
medicines for vulnerable populations, to undertaking infrastructure repairs and supporting the recovery of the
agriculture, tourism, and education sectors as well as repairs to public utilities, CCRIF continued. Payouts have als
o helped governments to stabilize public finances, protect development gains, and support vulnerable populations.
CCRIF said it operates the largest parametric insurance program in the world, supported by proprietary models and strategic partnerships.