The Caribbean Catastrophe Risk Insurance Facility (CCRIF) an
nounced 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. (See related article about CCRIF second payment, with an excess rainfall trigge
r: Jamaica to Get 2nd Parametric Insurance Payout for Excess Rainfall From Storm Melissa).
“This payout to Jamaica is not just a financial transaction, it is a reaffirmation of CCRIF’s mission to stand w
ith 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 swift response and recovery efforts, and we remain committed to helpin
g 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 u
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nder its excess rainfall policy, pending final model calculations. Excess rainfall assessments typically take a few d
ays longer than tropical cyclone evaluations due to the complexity of rainfall distribution and localized impacts.
CCRIF said it will confirm the outcome for this potentially additional payout once the modeled loss value is fully validated.
A founding member of CCRIF at its establishment in 2007, Jamaica has long integrated CCRIF’s parametric insuran
ce 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 Hurrica
ne Melissa crossed the island, with CCRIF’s tropical cyclone policy
triggering automatically based on modeled losses from wind and storm surge, CCRIF said.
This US$70.8 million payout marks the fourth to Jamaica since the CCRIF’s inception, bringing the country’s total va
lue 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 u
ndertaking infrastructure repairs and supporting the recovery of the agriculture, tourism, and education sectors a
s well as repairs to public utilities, CCRIF continued. Payouts have also helped governments to stabilize public finances, protect development g
ains, and support vulnerable populations.
CCRIF said it operates the largest parametric insurance program in the world, supported by proprietary models and strategic partnerships.