Regional insurance facility CCRIF SPC has made its first payments of the 2023 Atlantic hurricane season, totalling US$3.4 million.
The payments were made to the governments of Antigua & Barbuda and the British Virgin Islands following the passage of Tropical Storm Philippe earlier this month.
The storm made landfall in Antigua on October 2 and passed near the British Virgin Islands two days later, causing heavy rains and flooding in both countries. CCRIF said the payments were made under the countries’ parametric insurance policies for excess rainfall.
Antigua received the larger portion, US$2.88 million, making it the third payout received for damage from natural disaster over the years, the other times being in 2017 and 2022. For the BVI, the US$552,297 was its first payout from CCRIF.
“Whilst payouts are often used to address immediate needs after a disaster, governments can also implement activities to increase resilience against future hazard events, build back better and enhance social protection systems to become more shock-responsive,” said CCRIF CEO Isaac Anthony in a statement.
The latest payments bring the total distributions since CCRIF’s inception in 2007 to US$265 million to 17 of its 26 members.
“Throughout the years, CCRIF member governments have used payouts to address immediate needs post disaster – from providing food, water, and medicines to the most vulnerable, to clearing roads and fixing bridges, etc. Payouts have also been used for repairing and improving critical infrastructure such as schools and water treatment plants and supporting sectors such as tourism and agriculture,” said a segregated portfolio company whose policyholders include governments of the Caribbean and Central America.
CCRIF said it would continue to monitor the hurricane season which, according to Philip Ktotzback from Colorado State University, has now produced 91 named storm days.