Yes. CCRIF excess rainfall coverage will be available during the 2010/11 policy year. The development began with many CCRIF participating countries and stakeholder partners expressing a strong interest in being able to contract for catastrophic flood coverage. In response to these needs, CCRIF, using the World Bank’s Global Fund for Disaster Risk Mitigation, partnered with the Caribbean Institute for Meteorology and Hydrology (CIMH) to determine the feasibility of this coverage for member governments.
Following this study, CCRIF contracted CIMH and a specialised hazard modelling company, Kinetic Analysis Corporation (Kinanco) to develop and test a synthetic numerical rainfall model and, with input from Caribbean Risk Managers (CCRIF’s Facility Supervisor), implement a parametric excess rainfall insurance product. The excess rainfall product will utilise the rainfall amounts generated by the model as the parameter which triggers coverage. The proof of concept for the model and a comprehensive testing programme were undertaken during the second half of 2009. In January 2010, the rainfall model was installed at CIMH and training provided to allow stand-alone, 24/7 operation of the model by CIMH.
CCRIF’s excess rainfall coverage will be a separate product from the currently available hurricane and earthquake policies, which remain of utmost importance, as seen from the recent devastating earthquake in Haiti, whose earthquake policy was triggered to effect a rapid payout of US$8 million. The rainfall product will be offered to Caribbean governments by November 2011, and its aim is to reasonably replicate the overall impacts of extreme rain events.