CCRIF Ready to Pay Haiti a little over US$20 Million Following Passage of Hurricane Matthew

Grand Cayman, Cayman Islands, October 6, 2016 – CCRIF SPC (formerly the Caribbean
Catastrophe Risk Insurance Facility) is preparing to make a payout to the Government of Haiti as a
result of the passage of Hurricane Matthew which triggered a payment on the country’s Tropical
Cyclone policy. Based on preliminary calculations, Haiti will receive a little over US$20 million –
the largest payment ever made by CCRIF. This was revealed this afternoon by CCRIF Chairman
Mr. Milo Pearson at the IMF/World Bank Group Annual Meetings. He also thanked the Caribbean
Development Bank (CDB) for paying Haiti’s insurance premiums over the last four years in support
of the country’s overall disaster risk management strategy, recognising the key role of risk transfer
instruments. Prior to that, in 2010 and 2011, both CDB and the Government of Canada paid Haiti’s
annual premium.
Since its inception in 2007, CCRIF has made a total of 15 payouts to 10 member governments
totalling US$38.8 million, all within 14 days of the event. This payment will represent the 16th
payout, which would make total payouts approximately US$58.8 million.
This payment will be Haiti’s second payment from CCRIF. Recall that in 2010, following the
devastating earthquake, CCRIF made a payment to the Government of Haiti of US$7.7 million,
based on the terms of its Earthquake Policy. That payment represented the first inflow of direct
financial assistance received by Haiti at that time. The Haitian government used the CCRIF funds to
cover salaries of key emergency personnel, thereby “keeping the wheels of government turning.”
CCRIF’s parametric insurance products are insurance contracts that make payments based on the
intensity of an event (for example, hurricane wind speed, earthquake intensity or volume of rainfall)
and the amount of loss calculated in a pre-agreed model caused by these events. Parametric
insurance enables payouts to be made very quickly after a hazard event. This is different from
traditional insurance settlements that require an on-the-ground assessment of individual losses after
an event before a payment can be made.
Hurricane Matthew made landfall in Haiti on October 4 as a powerful Category 4 Hurricane. A
United Nations representative to Haiti, Mourad Wahba, said the country was facing its largest
humanitarian crisis since the earthquake in 2010 left more than 200,000 dead and tens of thousands
living in tents and makeshift dwellings. Over twenty-three deaths have been reported so far and
Matthew has caused significant damage to the southern coast. According to HRA (the Haiti
Renewal Alliance), Matthew brought intense rain, wind and surge waves, causing mudslides and
flooding. The main bridge that links the capital of Port-au-Prince to southern Haiti has
collapsed and the coast has been badly hit in the areas of Grande Anse, Port-Salut and Port-à-
Piment with 1,243,000 people (including 522,000 children) affected. Les Cayes has been totally
flooded. Initial estimates suggest that 4 million children in Haiti will be directly affected by the
storm.

CCRIF CEO, Mr. Isaac Anthony stated, “The CCRIF Board and Team extend our condolences to
Haiti on the loss of life and extend our support to the Government and people of Haiti as they
recover from this disaster.” Having already spoken to the Government of Haiti this morning, Mr.
Anthony further stated that “we know that the Government welcomes this payment and is looking
forward to beginning their recovery efforts”.
Earlier, as Matthew moved through the eastern Caribbean islands, the centre of the storm passed
over Barbados on September 28 as a Tropical Storm, triggering its CCRIF Tropical Cyclone policy.
Barbados will receive a payout of US$975,000. According to Barbados’ Department of Emergency
Management, all businesses closed that day until the all clear declaration on the morning of 29
September. There were reports of fallen trees, isolated flooding, power outages and water disruption
in some parts of the island.
Both Barbados and Haiti have Excess Rainfall policies also. Tropical Cyclone policies are designed
to cover damages from wind and storm surge but not rainfall. Therefore, it is possible that these
countries’ rainfall policies may be triggered as well – this would entitle them to an additional
payout. There also is a possibility that other countries in the Eastern Caribbean who were earlier
affected by Matthew may receive payouts under their Excess Rainfall policies. The model for
excess rainfall events requires a few days longer to calculate results compared with the wind-based
tropical cyclone model and CCRIF will issue new information when that assessment is complete.
CCRIF and the work we do continue to be cited as an internationally recognized example of a risk
transfer mechanism that should be seen as a key and indispensable component of countries’
strategies for economic development, disaster risk management and climate resilience as these
countries seek to achieve higher levels of growth, reduce poverty and become internationally
competitive.
About CCRIF SPC: CCRIF SPC is a segregated portfolio company, owned, operated and
registered in the Caribbean. It limits the financial impact of catastrophic hurricanes, earthquakes and
excess rainfall events to Caribbean and – since 2015 – Central American governments by quickly
providing short-term liquidity when a parametric insurance policy is triggered. It is the world’s first
regional fund utilising parametric insurance, giving member governments the unique opportunity to
purchase earthquake, hurricane and excess rainfall catastrophe coverage with lowest-possible
pricing. CCRIF was developed under the technical leadership of the World Bank and with a grant
from the Government of Japan. It was capitalized through contributions to a Multi-Donor Trust
Fund (MDTF) by the Government of Canada, the European Union, the World Bank, the
governments of the UK and France, the Caribbean Development Bank and the governments of
Ireland and Bermuda, as well as through membership fees paid by participating governments. The
Central America SP is capitalized by contributions to a special MDTF by the World Bank,
European Commission and the governments of Canada and the United States.

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