CCRIF to make second insurance payout of US$21.1 million to Jamaica following Hurricane Melissa

The Caribbean Catastrophe Risk Insurance Facility (CCRIF SPC) has confirmed that it will make a second payout of US$21.1 million (J$3.4 billion) to the Government of Jamaica following the passage of Hurricane Melissa. The payout was triggered by Jamaica’s excess rainfall parametric insurance policy, which provides coverage when rainfall intensity and distribution exceed pre-set thresholds.

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This comes just days after CCRIF announced a record-breaking payout of US$70.8 million (J$11.4 billion) on Jamaica’s tropical cyclone policy, which was activated after the storm’s strong winds and storm surge caused extensive damage across the island. Combined, the total payouts to Jamaica now stand at US$91.9 million (J$14.8 billion)—the highest amount CCRIF has ever disbursed to a single member country for a single event.

To ensure immediate access to funds, CCRIF provided the Government with an advance payment of US$8 million on November 3, just days after the storm passed. The remaining US$62.8 million from the tropical cyclone policy will be settled by November 13, within CCRIF’s 14-day payout commitment. The excess rainfall payout will also be completed within 14 days, following final verification of rainfall model data—a process that typically takes slightly longer due to the complexity of assessing localized rainfall impacts.

CCRIF’s parametric insurance model plays a critical role in Jamaica’s disaster risk financing strategy, allowing for rapid financial response without waiting for traditional damage assessments. Funds are used to support vulnerable communities, restore infrastructure, stabilize essential public services like water and electricity, and maintain fiscal stability in the wake of disasters.

Jamaica, a founding member of CCRIF since its establishment in 2007, currently has policies covering tropical cyclones, excess rainfall, and earthquakes. Over the years, the country has received payouts for Tropical Cyclones Beryl, Eta, and Zeta, underscoring the importance of its long-term investment in climate resilience.

Since its inception, CCRIF has made 82 payouts totaling US$483 million to member countries across the Caribbean and Central America. The organization continues to expand its range of financial protection tools, including upcoming products tailored for the water, electricity, and fisheries sectors, which could further strengthen Jamaica’s resilience against climate-related shocks.

CCRIF CEO Isaac Anthony is expected to visit Jamaica in the coming days to meet with senior government officials to discuss the latest payouts, ongoing recovery efforts, and ways to enhance the country’s financial protection and disaster response capabilities.