International Development Grant
Caribbean Catastrophe Risk Insurance Facility
Project Number: CA-3-A033475001
Status: Closed
Country/Region: Unknown
Regional Focus:
Maximum Contribution: $25,000,000.00
Start Date: April 05, 2007
End Date: August 18, 2011
Duration: 4.4 years
Project Description
Following the devastation caused by natural disasters in the Caribbean in 2004 the Caribbean Community (CARICOM) member states asked the World Bank for assistance with gaining access to affordable and effective disaster risk financing arrangements. In response the World Bank developed an insurance mechanism called the Caribbean Catastrophe Risk Insurance Facility (CCRIF). The CCRIF allows Caribbean countries to pool natural disaster risks reduces the cost of insurance and ensures swift payment of claims. It allows CARICOM governments to purchase insurance coverage akin to business interruption insurance that provides them with immediate liquidity in the event of a hurricane or earthquake. Because of the speed at which claim payments are processed the instrument is particularly useful for financing immediate post-disaster recovery needs while the affected country seeks funds from other sources for longer-term reconstruction.
Progress & Results Achieved
Results achieved as of the end of the project (March 2012) include: All 16 participating countries and territories have insurance policies from the Caribbean Catastrophe Risk Insurance Initiative (CCRIF). Seven countries received eight pay-outs from the CCRIF totalling more than US$32 million generally within two weeks of the disaster's occurrence (Dominica and Saint Lucia after an earthquake in 2007; Turks and Caicos Islands after a hurricane in 2008; Haiti following the 2010 earthquake; Anguilla after a hurricane in 2010; and Barbados Saint Lucia and St.Vincent and the Grenadines following a hurricane in 2010). The 16 members have signed up to a total of 29 insurance policies each year. Based on operational experience and due to the overall prudence of CCRIF's financial position and risk assessment premiums have been reduced three times. The CCRIF developed a real-time forecasting system for cyclones and has begun the development of a new insurance product for protection from excess rainfall. The CCRIF also launched a technical assistance program for Caribbean institutions. The program also funded member countries’ officials with bursaries for academic study and for attendance at technical workshops.
Key Information
Executing Agency:
Caribbean Development Bank
Reporting Organization:
Global Affairs Canada
Program:
NGM Americas
Last Modified:
September 19, 2025
Development Classifications
DAC Sector:
Aid Type: Basket funds/pooled funding
Collaboration: Bilateral
Finance Type: Aid grant excluding debt reorganisation
Selection Mechanism:
Pre-APP