SVG to receive US$1.1m. from CCRIF

St. Vincent and the Grenadines will receive a payout of US$1.1 million from the Caribbean Catastrophe Risk Insurance Facility (CCRIF) as a result of damage sustained during the passage of Hurricane Tomas.{{more}}

According to a release from the CCRIF, the CCRIF model generated substantial government losses in Barbados, Saint Lucia and St. Vincent and the Grenadines.

Barbados endured the biggest actual loss (as it is a significantly bigger economy than the other two) as well as the biggest loss relative to GDP (just over 1.5%), also due to a high coastal exposure. Both Saint Lucia and St. Vincent and the Grenadines endured modelled losses of around half of one percent of GDP.

Preliminary reports from all three islands suggest that the impacts are commensurate with these levels of losses. All areas of Barbados have been significantly impacted, whereas severe impacts have been limited to the southern parts of Saint Lucia and the northern parts of St. Vincent.

CCRIF coverage triggered in all three islands in which losses were recorded in the CCRIF model. Preliminary calculations show payouts of US$8.5 million for Barbados, US$3.2 million for Saint Lucia and US$1.1 million for St. Vincent and the Grenadines. These payouts reflect the application of policy conditions to the modelled government loss.

Each member of CCRIF selects their own policy attachment point (equivalent to a deductible), exhaustion point (equivalent to the full policy value) and the level of premium they wish to pay. These three conditions then dictate what the payout will be relative to the loss.

Under the terms of CCRIF policies, a final loss and payout calculation will be undertaken on 13 November, with the National Hurricane Centre data available at that time used as input to the loss model. Payout will be made as soon thereafter as possible.

Hurricane Tomas remains an active storm and could impact further CCRIF – covered countries.

Should that occur, a second event report will be issued.