Having already seen its parametric tropical cyclone insurance triggered by major hurricane Melissa’s winds, Jamaica is now set to also benefit from a payout under its CCRIF SPC parametric excess rainfall policy, taking the total it will receive to $91.9 million.
Melissa brought torrential rains alongside its damaging winds and now Jamaica’s foresight in purchasing parametric disaster insurance is set to assist in the country’s recovery from the catastrophe.
Last week, CCRIF announced that it will make its biggest single payout after after major hurricane Melissa triggered Jamaica’s tropical cyclone policy, with US $70.8 million due to Jamaica.
With US $21.1 million now also due to Jamaica’s Government for the parametric rainfall insurance policy, the country will receive $91.9 million, all within 14 days of when the policies were triggered.
However, CCRIF noted that on November 3rd it paid the Government of Jamaica a portion of the tropical cyclone policy payout, $8 million, giving immediate liquidity to aid the recovery and the remaining $62.8 million will be paid by November 13th.
The excess rainfall policy payout will also be made within 14 days CCRIF said, following final model verification, which takes a little longer than tropical cyclone policies due to the complexity of rainfall distribution and localised impacts.
The addition of the excess rainfall policy payout to Jamaica now means that CCRIF SPC has made 82 payouts totalling US $483 million in its history.
Parametric disaster insurance and risk transfer structures are proving their value after hurricane Melissa.
As we reported yesterday, Liberty Latin America, one of the largest communications and entertainment service providers in the region, is anticipating around an $81 million payout from its parametric windstorm insurance after hurricane Melissa activated its coverage in the Caribbean.
There have also been a number of parametric insurance policies triggered for resorts and hoteliers, particularly in the Montego Bay area where there was extensive structural damage from the hurricane, we understand.
In addition, the final determination for Jamaica’s catastrophe bond is expected imminently, with a payout anticipated to further support the country’s recovery.
