Multi-country risk facility Caribbean Catastrophe Risk Insurance Facility Segregated Portfolio Company (CCRIF SPC) announced Thursday that it has paid out almost $13 million to the government of The Bahamas after its hurricane insurance policy for the northern region was activated by Hurricane Dorian.
CCRIF, in a release on its website, initially announced that it would pay The Bahamas US$10,936,103, after deadly Hurricane Dorian devastated Abaco and Grand Bahama, but the catastrophe insurance scheme adjusted the number to US$12,824,153.
“The Bahamas has three tropical cyclone policies and three excess rainfall policies with CCRIF, each covering a section or zone of the archipelago – northwest, southeast and central,” CCRIF stated in its release.
“The government received US$11,527,151 from the triggering of its tropical cyclone policy and US$1,297,002 from its excess rainfall policy for the northwest zone, which includes the Abaco Islands and Grand Bahama.
“Dorian made landfall on September 1 and battered the Abaco Islands and Grand Bahama, in the north of the archipelago, for two days.”
According to CCRIF, The Bahamas government received 50 percent of its payout seven days after the passage of the storm “to allow the government to begin to address its most pressing needs.”
It said the remaining 50 percent was paid within 14 days.
“A CCRIF team, led by its Chief Executive Officer Isaac Anthony, will visit The Bahamas within the next two weeks to work with the government in their recovery efforts, including supporting the country to increase its long-term resilience to hydrometeorological hazards such as storms and hurricanes, the frequency and impacts of which are being exacerbated by climate change,” the release stated.
“Anthony and his team also will engage in further discussions with the government to determine how the facility may provide some additional support from its technical assistance program.”
The Bahamas has received hundreds of millions of dollars in aid in the past month, though estimates point to the full recovery of Abaco and Grand Bahama costing billions.