The entry of abundant moisture from both the Caribbean Sea and the Pacific Ocean generated favorable conditions that produced prolonged periods of rain/showers and thunderstorm activity over Guatemala from the first days of May 2020. Adverse weather was produced over the North, West, East, and Centre of Guatemala.
This event briefing describes the impact of the precipitation on Guatemala, which is associated with a Covered Area Rainfall Event (CARE), starting on 9 May and ending on 20 May 2020.
“The Caribbean is the only region in the world that has a regional insurance system. The CCRIF is quite unique and actually is looked upon by other countries as a possible lessons learned to see what can be extrapolated.”
“You’ve already created, Mr. President, an initiative and an innovative model for regional cooperation by pooling risks to respond to natural disasters. And therefore I think that the whole region is better equipped in the future to deal with these pending problems.” Former US Vice President Joe Biden, speaking about CCRIF at a meeting in 2013 with Trinidad and Tobago President Anthony Carmona and Prime Minister Kamla Persad-Bissessar and other Caribbean leaders
“The CCRIF’s ability to turn around payments in less than a month for eight separate cat claims since its inception in 2007 makes it a truly valuable and unique solution.” Ms. Dianne Batistoni – Partner, Financial Services- Insurance Group Eisner Amper, when Best’s Review January 2013 Innovative Showcase recognized CCRIF as a “good innovative/non-traditional approach to reinsurance for emerging/economically challenged countries”
“The sum is small, but the proof of concept, powerful. The CCRIF moved faster than the World Bank, faster than the IMF, faster than the U.S.< government. If another 0 or so were appended to the CCRIF financing numbers, it could become a superior alternative to ad hoc debt relief and debt creation at dire moments.” Center for Global Development, January 2010, referring to CCRIF’s payout of US$7.75 million after the January 2010 earthquake, which represented approximately 20 times Haiti’s earthquake premium
Although disaster insurance is far from a panacea for managing the risks posed by climate change, it can provide a certain amount of resilience for vulnerable people in the short term. There have been some interesting examples of disaster risk insurance facilities that have come on stream since last year’s Cancun climate conference. … there is one that has been operating successfully… and which may offer a model for others to copy: The Caribbean Climate Risk Insurance Facility (CCRIF).
Poorer countries are less able to afford the “premiums” that catastrophe bond issuers pay to investors in return for protection. But countries such as Bangladesh and Nepal could benefit from a regional risk-pooling mechanism like the Caribbean Catastrophe Risk Insurance Facility, a multi-country disaster-relief fund set up in 2007. This is a donor-backed scheme for the rainiest of days, into which Caribbean governments also pay a contribution. The CCRIF includes a lot of countries, which diversifies risk and reduces premiums.
The G-7 announced action to support efforts by vulnerable developing countries to manage climate change-related disaster risk through insurance, with an aim to increase the number of people with access to direct or indirect climate risk insurance coverage by up to 400 million by 2020. This commitment will build upon existing risk insurance facilities such as the Caribbean Catastrophe Risk Insurance Facility (CCRIF). In 2014, the United States contributed $10 million to support expansion of catastrophe risk insurance coverage through the CCRIF to Central American countries.
“[CCRIF] could serve as a model for collective strategies for dealing with natural disasters ... [it] provides participating governments from the Caribbean region with immediate access to cash if hit by a hurricane or earthquake and could save countries signifi cantly. Pooling their risk will save the 16 participating countries approximately 40 per cent in individual premium payments.”
“[CCRIF] could serve as a model for collective strategies for dealing with natural disasters ... [it] provides participating governments from the Caribbean region with immediate access to cash if hit by a hurricane or earthquake and could save countries signifi cantly. Pooling their risk will save the 16 participating countries approximately 40 per cent in individual premium payments.” Mr. John Nash, former lead economist for Latin America and the Caribbean at the World Bank