The CCRIF is a parametric insurance facility, owned, operated and registered in the Caribbean for Caribbean governments. It insures government risk and is designed to limit the financial impact of catastrophic hurricanes and earthquakes to Caribbean governments by quickly providing short term liquidity when a policy is triggered.

It is the world's first regional insurance fund, giving Caribbean governments the unique opportunity to purchase earthquake and hurricane catastrophe coverage not available elsewhere and with lowest-possible pricing.

The CCRIF represents a paradigm shift in the way governments treat risk, with Caribbean governments leading the way in pre-disaster planning.

In February 2007, the World Bank hosted a donor conference with the aim of raising funds for the start-up of the CCRIF. A total of US$47M was pledged by Canada, France, UK, the World Bank and the Caribbean Development Bank; additional support from the European Union and Ireland is under discussion. Japan supported the CCRIF by funding the Facility's feasibility study through the Jamaica Social Investment Fund (JSIF).

In June 2007, at the start of the Atlantic Hurricane Season, the CCRIF was launched. By pooling their risk, the governments saved approximately 40% on what each government would have paid had they negotiated individually through commercial insurance markets.