CCRIF cuts premiums again
Published:Wednesday | July 14, 2010 | 12:00 AM
The Caribbean Catastrophe Risk Insurance Facility (CCRIF) has again chopped premium rates by 10 per cent to its 16 member countries, effective June.
"In recognition of the exceptional fiscal challenges which the region continues to face this year due to the global economic crisis, CCRIF explored a number of channels to ease the premium burden on participants," the agency said in a statement.
But CCRIF, whose assets and donor funds now total some US$115 million, was not willing to disclose specific details on coverage limits.
"As a result of increased appreciation of seismic risk, following the Haiti earthquake in January, 12 countries increased their coverage limit for earthquakes," said CCRIF.
No further details
Simon Young, chief executive officer of Caribbean Risk Managers Limited (CaribRM), facility supervisor to CCRIF, said no further details could be released at this point.
CaribRM's three-year contract with CCRIF has run its course, but the company remains facility supervisor until the World Bank-sponsored insurer selects a new partner.
CaribRM is also going after the new contract.
Last year, Jamaica bought US$107.5 million (J$9.6 billion) of coverage - split between US$57.5 million for hurricanes and US$50 million for earthquakes - for which it paid premiums of J$439 million.
The finance ministry has budgeted similar premiums for 2010.
This year's cut in premium rates is the third since the regional insurance facility was set up in 2007.
Last year, policyholders opted not to take up the drop in price, choosing the option of increasing coverage levels instead.
CCRIF has also implemented a second-generation model, developed by Kinetic Analysis Corporation, which is now used as a basis for estimating government losses and triggering payouts under CCRIF's parametric policies.
The Kinetic model explicitly includes losses due to storm surge, and replaces the previous system developed by EQECAT Inc.
CCRIF said the new modelling platform makes it easier to develop and implement additional products beyond hurricane and earthquake coverage, such as the excess-rainfall product, which is expected to be available by year-end.