Trinidad and Tobago gets US$2.4m adverse weather payout for August

THE Caribbean Catastrophe Risk Insurance Facility (CCRIF) has paid Government US$2.4 million (TT$16.14 million) after the bad weather which occurred between August 18 and 20.

A release from the CCRIF said this adverse weather was caused by the Inter-Tropical Convergence Zone (ITCZ) and led to heavy rain resulting in major flooding and landslides across southern and western Trinidad.

The CCRIF is a segregated portfolio company, owned, operated and registered in the Caribbean. It seeks to limit the financial impact of catastrophic hurricanes, earthquakes and excess rainfall events to Caribbean and Central American governments by providing short-term liquidity.

The Government purchased two separate CCRIF policies for excess rainfall – one for Trinidad and one for Tobago – due to different hazard risk profiles for each of the islands. The US$2.4 million payout was made on the excess rainfall policy for Trinidad.

Since purchased coverage for excess rainfall in 2017, TT has received five payouts under its excess rainfall policy, totalling US$12.5 million

The Government also has cover for tropical cyclones – one policy for Trinidad and one for Tobago ­– and for earthquakes.

For periods of heavy rain between October 18 and October 20 in 2017 and 2018 respectively, Government received US$9.5 million from the CCRIF.

These two payouts were used for general clean-up such as clearing debris; providing building materials and appliances to households impacted by the rains; providing payment to relief workers; and for repairs to the Uriah Butler Highway (the Caroni section of highway), which was damaged by the 2018 rains.

The latest payout to TT, brings to 54 the total number of payouts CCRIF has made since its inception in 2007, totalling approximately US$245 million. The 54 payouts were made to 16 of its 23 members.

The CCRIF made its largest payout to date, earlier this month, to Haiti, which received US$40 million after the devastating 7.2 earthquake that struck that country on August 14.

With the cost of rebuilding following natural disasters usually being very high, governments buy CCRIF insurance for an early injection of quick liquidity or financial protection to help mobilise resources in the immediate aftermath of a disaster, while buffering the long‐term fiscal impact of disasters.

The CCRIF was developed under the technical leadership of the World Bank and with a grant from the Government of Japan.