The Caribbean Catastrophe Risk Insurance Initiative : A Review of CCRIF's Operation After Its Second Season
This report provides an external assessment of the operations of the Caribbean Catastrophe Risk Insurance Facility (CCRIF) during its second policy year from June 1, 2008 to May 31, 2009. Developed at members and associate members of the Caribbean...
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| Format: | Working Paper |
| Language: | English en_US |
| Published: |
Washington, DC
2014
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| Online Access: | http://documents.worldbank.org/curated/en/2010/04/18923410/review-ccrifs-operation-after-second-season http://hdl.handle.net/10986/17665 |
| Summary: | This report provides an external
assessment of the operations of the Caribbean Catastrophe
Risk Insurance Facility (CCRIF) during its second policy
year from June 1, 2008 to May 31, 2009. Developed at members
and associate members of the Caribbean Community
(CARICOM's) request following the devastation wrought
on Grenada and the Cayman Islands by Hurricane Ivan in 2004,
CCRIF was established in May 2007. The World Bank and a
number of donors contributed to CCRIF's start-up
capital and also underwrote a portion of some members'
initial participation fees and premium payments during
CCRIF's first three policy years. A multi-donor trust
fund continues to reimburse CCRIF for certain eligible
expenditures, thus facilitating continued growth of
CCRIF's reserves and risk-bearing capacity. The report
aims to contribute to on-going discussions within the
broader disaster risk management community about the
possibilities for scaling up the role of CCRIF in the
Caribbean and replicating or adapting CCRIF's
innovative model of ex ante disaster risk financing in other
disaster-prone regions of the world. Rolling out the
second-generation loss model, the anticipated excess
rainfall coverage and, possibly, hurricane loss coverage for
members of Caribbean Association of Electrical Utilities
(CARILEC) will require intensive interactions with
CCRIF's members, reinsurance markets, key partner
institutions, and the media to ensure a common understanding
of the model and the features, inherent basis risk, and
benefits of the policies. Increasing CCRIF's
transparency is also vital to broadening understanding of
CCRIF's governance structure, modeling, and policy
coverage and consolidating CCRIF as a well-recognized and
widely-valued Caribbean institution. |
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