Panama quake triggers CCRF SSPC payout
CCRIF SPC (formerly the Caribbean Catastrophe Risk Insurance Facility) will make a payout of $17.4 million to the Government of Panama following the magnitude 7.7 earthquake that struck the country on 9 October 2026. In keeping with CCRIF’s commitment to provide rapid liquidity to its members, the payout will be made within 14 days of the event.
The earthquake occurred at 12:56 p.m. local time, with its epicentre near Pitaloza Arriba on the Azuero Peninsula. Using its SPHERA earthquake model, CCRIF estimated peak ground acceleration of up to 0.5 g in Panama, the only CCRIF member country to experience shaking above the model’s 0.03 g reporting threshold. The modelled government losses exceeded the attachment point of Panama’s earthquake policy, triggering the payout.
According to the latest official SINAPROC (Panama’s National Civil Protection System) report, dated October 12, 2026, the 7.7 magnitude earthquake that occurred on October 9 caused damage to homes, schools, hospitals, public buildings, and roads in various provinces across the country. The preliminary assessment reports 656 affected schools. Also, 14 shelters were opened that housed 598 people. Damage evaluation and humanitarian assistance continue. At the time the report was finalised, no deaths or missing persons had been reported.
CCRIF chief executive Isaac Anthony, said: “Our thoughts are with the people of Panama, and especially with the families and communities affected by this earthquake. This payout will give the Government immediate liquidity to support its response at the time it is most needed. Panama’s decision to secure its CCRIF earthquake coverage through the Fondo de Ahorro de Panamá is a strong example of how parametric insurance can work alongside national savings and stabilisation mechanisms as part of a layered approach to financing disaster risk.”
Panama has been a member of CCRIF since 2018 and has received 3 previous payouts from CCRIF to support disaster response. Previous payouts were made for excess rainfall linked to Hurricane Eta in 2020 and the exceptional rain events in 2024, totalling approximately $29 million. This payout for the October 9 earthquake brings total payouts to Panama to approximately $47 million. With this payout, CCRIF will have made 83 payouts to its members since its inception in 2007, totalling over $500 million - every one made within 14 days of the event.
CCRIF’s parametric insurance policies pay out based on the occurrence of a pre-defined hazard event and the losses due to that event calculated by CCRIF’s models, rather than on an assessment of losses on the ground. This allows payouts to be made quickly, providing members – governments, organisations and utilities - with quick liquidity in the critical period immediately after a disaster.
Did you get value from this story? Sign up to our free daily newsletters and get stories like this sent straight to your inbox.
