15 September 2023news

Honduras joins Caribbean cat pool CCRIF

CCRIF SPC, the catastrophe pool for the Caribbean, has unveiled Honduras as its fourth member from Central America. The Honduras Government has purchased parametric insurance coverage for excess rainfall, effective from 1 June 2023.

CCRIF, structured as segregated portfolio company, limits the financial impact of catastrophic hurricanes, earthquakes, and excess rainfall events to Caribbean and Central American governments by quickly providing short-term liquidity when a parametric insurance policy is triggered. It is the world’s first regional fund utilising parametric insurance.

Isaac Anthony, CEO of CCRIF, said: “I am happy to welcome Honduras to CCRIF and look forward to continuing to engage with the Government as it accesses CCRIF parametric insurance as an effective means of closing the protection gap and strengthening the country’s public financial management framework.

“Access to excess rainfall insurance will allow the Government the flexibility to begin recovery efforts immediately following a natural disaster as payouts received within 14 days of an event can be used to address the country’s most urgent needs, including helping vulnerable populations or rehabilitating critical infrastructure among other areas.”

The Ministry of Finance of the Republic of Honduras (SEFIN) issued the following statement: The Government Plan of President Xiomara Castro underscores the urgency of enacting public policies focused on disaster protection, prevention, and planning.

“Such policies are designed to ensure the resilience of our population, as well as bolster the infrastructure and resources to confront the growing severity and frequency of natural hazard events.

“Through the recently signed ‘agreement with CCRIF, our goal is to continue strengthening Honduras’ public finances and its capacity to respond to and recover from disasters, without forgetting the enhancement of institutional capacity to effectively manage a resilient and inclusive recovery and reconstruction process.”

Honduras’ entry and participation in CCRIF was supported by the Central America and Caribbean Catastrophe Risk Insurance Program Multi-Donor Trust Fund (MDTF), administered by the World Bank.