POND ISLAND–St. Maarten is now a member of the Caribbean Catastrophic Risk Insurance Facility (CCRIF). This means government is insured through this facility as of September 1 for damage resulting from earthquakes, tropical cyclones and excess rainfall. The country’s membership is financed via the World Bank-administered Recovery Trust Fund.
CCRIF requires the payment of a one-year premium as participation fee. The anticipated annual premium is approximately US $790,000 for the maximum coverage. The country’s contracts with the facility for 2018 and 2019 “are still being processed, making it difficult to provide the precise numbers right now,” according to government in response to The Daily Herald’s query about cost.
CCRIF is the first multi-country risk pool in the world. This insurance instrument helps small countries such as St. Maarten with short-term cash flow problems after a catastrophic event like a hurricane or earthquake. CCRIF pays out within two weeks after a disaster. These quick pay-outs help countries in financing their initial disaster response and to maintain basic government functions after a catastrophic event.
The facility has made pay-outs totalling US $130.5 million to 13 member governments on their tropical cyclone, earthquake and excess rainfall policies since its inception in 2007. During last year’s hurricane season, CCRIF paid out $62 million to member states, including to Anguilla ($6.7 million), Dominica ($20.3 million) and Antigua and Barbuda ($6.8 million).
Prime Minister Romeo-Marlin said in a press statement on Monday that this membership is “an important step for St. Maarten.”
“Through CCRIF, St. Maarten protects itself from short-term liquidity problems after a major natural disaster. We are very pleased that St. Maarten is able to follow the example of our neighbouring countries, including Anguilla and St. Kitts and Nevis, in joining this unique insurance facility,” said Romeo-Marlin.
Source: The Daily Herald https://www.thedailyherald.sx/islands/80240-st-maarten-joins-caribbean-catastrophic-risk-insurance
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