European Union Grants $4.7 Million for Disaster Risk Insurance Policies in Belize
The European Union has issued a four point seven million US dollar grant to support disaster risk insurance policies from the Caribbean Catastrophe Insurance Facility (CCRIF). The funds were provided through a programme administered by the World Bank. The EU funds enabled CCRIF to provide discounts of approximately 14 per cent on the gross premium for the tropical cyclone and excess rainfall policies of member countries. Belize is one of the 12 member countries set to benefit from these discounted premiums. Head of the EU Delegation to Barbados, the Eastern Caribbean States, the OECS and CARICOM/CARIFORUM, Malgorzata Wasilewska that the renewal of insurance policies at this time shows that countries are prioritizing the disaster risk financing as a means of advancing sustainable development. Wasilewska added quote “Recent and past support from the EU to CCRIF was adequate to ease payment of member countries’ premiums and improve their risk coverage against natural hazards. However, the global context calls for constant search for innovative solutions to allow the successful facility to grow accordingly. The EU is partnering with CCRIF to focus on self-sustainable mechanisms allowing for progress in the region, while keeping this valuable tool at the service of the countries,” end of quote. The CCRIF currently offers parametric insurance policies against earthquakes, based on modelled losses due to ground shaking. Payouts for the tropical cyclone policies are based on modelled losses due to wind and storm surge; while excess rainfall payouts are based on modelled losses due to the amount of rainfall. The CCRIF also offers the Caribbean Ocean and Aquaculture Sustainability FaciliTy (COAST) policy for the fisheries sector, based on rain, waves, wind and storm surge; and a product for electric utilities, based on losses due to wind for their transmission and distribution lines.