(MENAFN- Caribbean News Global) CAYMAN ISLANDS / JAMAICA – CCRIF SPC announced that it will make a payout of US$70.8 million to the government of Jamaica following the passage of hurricane Melissa. This marks the largest single payout in CCRIF's history and is a powerful demonstration of the organisation's parametric insurance model. Subject to final model verification, this payout will be made within 14 days, consistent with CCRIF's commitment to speed, transparency, and fiscal responsiveness.

In announcing the payout, CCRIF CEO, Isaac Anthony, stated:

“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. 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 helping build a more resilient and secure future for all.”

In addition to the tropical cyclone payout, the government of Jamaica is expected to receive a second payout under its excess rainfall policy, pending final model calculations. Excess rainfall assessments typically take a few days longer than tropical cyclone evaluations due to the complexity of rainfall distribution and localised impacts. CCRIF will confirm the outcome for this potentially additional payout once the modelled loss value is fully validated.

Jamaica, a founding member of CCRIF at its establishment in 2007, has long integrated CCRIF's parametric insurance products –- covering tropical cyclones, excess rainfall, and earthquakes – into its comprehensive disaster risk financing strategy and risk layering framework. This strategic foresight has enabled Jamaica to be certain of the availability of access to liquidity just three days after hurricane Melissa crossed the island, with CCRIF's tropical cyclone policy triggering automatically based on modelled loss values.

Within the context of Jamaica's dynamic disaster risk financing framework, CCRIF stands ready to support the government in expanding its coverage portfolio by considering additional products from CCRIF for the water and electric utility sectors, as well as the fisheries sector. This will further enhance the government's financial protection strategy and ensure continuity of essential services in the face of future climate-related shocks. The government currently has coverage from CCRIF for tropical cyclone, excess rainfall and earthquake.

CCRIF's parametric insurance policies are designed to respond to the intensity of a hazard event, considering the assets exposed, and the modelled losses based on the organisation's state-of-the-art parametric insurance models, without requiring on-the-ground damage assessments.

This US$70.8 million/J$11.4 billion marks the fourth payout to Jamaica, bringing the country's total value 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 totalling 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. Payouts have also helped governments to stabilise public finances, protect development gains, and support vulnerable populations.

CCRIF's parametric insurance model, now globally recognised, has proven to be both technically sound and economically transformative. Annual coverage has exceeded US$1 billion since 2021 and now stands at US$1.44 billion. CCRIF operates the largest parametric insurance programme in the world, supported by proprietary models, strategic partnerships, and a commitment to innovation.

The post CCRIF to make record US$70.8M (J$11.4B) payout to Jamaica following devastation by hurricane Melissa appeared first on Caribbean News Global.

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