More Caribbean countries take out flood insurance
Antigua, Barbuda, the Bahamas, Jamaica and the Turks and Caicos Islands have joined the other twelve Caribbean countries for the first time to take out excess rainfall coverage as part of their "Caribbean Catastrophe Risk Insurance Facility (CCRIF)" for 2015/2016. &nbsp;The CCRIF had also offered in turn a premium package that includes a 50% discount for hurricane and earthquake policies and a 15% discount on excess rainfall policies. &nbsp;Although the US National Oceanic and Atmospheric Administration predicted below average storms this year, there is still the likelihood of up to 11 named storms, up to 6 hurricanes and perhaps up to 2 major hurricanes forecast for the area.
SIXTEEN Caribbean member governments of the Caribbean Catastrophe Risk Insurance Facility (CCRIF) SPC completed their catastrophe insurance portfolios for 2015/2016.





All 16 Caribbean members renewed their hurricane policies, all 13 that had earthquake policies renewed those, and 12 obtained excess rainfall coverage, a recent press statement from the organisation announced.





This amount is representative of an increase of four over the eight countries that purchased excess rainfall policies for the first time last year.





The countries that purchased excess rainfall coverage for the first time in 2015/2016 were Antigua and Barbuda, the Bahamas, Jamaica and the Turks and Caicos Islands.





CCRIF’s first Central American member, Nicaragua, purchased hurricane and earthquake policies and discussions are proceeding with other Central American countries for hurricane, earthquake and excess rainfall coverage.





The addition in 2014 of excess rainfall coverage to the CCRIF suite of insurance products provided early demonstration of its value - four pay-outs totalling $3.4 million were paid to three member governments under their excess rainfall policies.





One of these pay-outs was made to the Government of Anguilla after the passage of hurricane Gonzalo, which did not trigger that country’s hurricane policy – which is based on wind speed and storm surge.





The other three payments, including a second to Anguilla, were due to two trough systems that were not part of a tropical cyclone and which caused considerable damage to the affected countries. Barbados and St Kitts and Nevis were the other two recipients of pay-outs for excess rainfall coverage last year.





CCRIF recognises the increasing economic and financial pressures faced by member governments and continues to seek to minimise premium costs and offer preferable options for member countries, the release read.





For the 2015/2016 policies, CCRIF offered a premium package that included a 50 percent discount for hurricane and earthquake policies and a 15 percent discount on excess rainfall policies.





This rebate was a way of providing a benefit to member countries based on CCRIF’s positive financial performance.





Also, for hurricane policies, the facility offered to lower the minimum attachment point (or deductible) to a return period of 10 years.





This means that CCRIF would begin to pay for losses resulting from a storm that statistically occurs every 10 years and therefore would increase the likelihood that a country would receive a pay-out.





Member countries were also provided with the option to lower their policy exhaustion point, which is the severity of the losses that trigger the maximum payment.





A lower exhaustion point makes the maximum pay-out more likely and increases the value of any pay-out made on the policy.





The rebates and lower attachment or exhaustion points were well received by member governments, CCRIF said.





Although the US National Oceanic and Atmospheric Administration (NOAA) predicted a below-average number of storms during the Atlantic Hurricane Season which ends on November 30, this still means that there is a likelihood of six to 11 named storms, three to six hurricanes and zero to two major hurricanes.



