- Sep 6, 2019 3:00 pm GMT
- 2109 views
Some of the first financial relief the Bahamas receives in the aftermath of Hurricane Dorian may be a rapid insurance payout from a novel program just 12 years old.
CCRIF, once short for the Caribbean Catastrophe Risk Insurance Facility, was established in 2007 to provide funds for countries hit by cyclones, earthquakes or extraordinary rainfall. The segregated portfolio company is an example of parametric insurance, designed to make immediate injections of money in the wake of a catastrophe. Funds are deployed within two weeks of a disaster and are based not on after-the-fact damage assessments — which can take months — but on metrics predetermined by a country's particular risk.
Wonder if this will be a model that will also be used for climate resilience, recovery from climate events, and other necessary accomodations the island nations of the world must consider as the first ones who will be affected by the direct effects of climate change?