The government of Jamaica is set to receive a second payment of $21.1 million from the Caribbean Catastrophe Risk Insurance Facility (CCRIF) in response to damages caused by Hurricane Melissa. This follows an earlier payout of $70.8 million linked to losses from wind and storm surge during the same storm. Together, these payments bring the total amount Jamaica has received from CCRIF due to Hurricane Melissa to nearly $92 million.
CCRIF, a parametric insurer serving Caribbean and Central American countries, uses specialized models to quickly provide funds after natural disasters. The initial payment of $70.8 million, made earlier this month, was mainly based on modeled losses from tropical cyclone winds and flooding caused by storm surge. Jamaica received $8 million immediately for urgent needs, with the rest set for payment within 14 days following the event.
The upcoming $21.1 million payout is for excess rainfall caused by the hurricane. CCRIF said that rain-related assessments usually take a bit longer because rainfall can vary widely in certain areas. They expect to finalize this payout within two weeks once the rainfall data is fully verified.
CCRIF’s quick payouts offer crucial support for recovery efforts. The funds help repair roads, bridges, and public services, assist vulnerable communities, and keep the country’s economy stable after disasters. This is especially important for Jamaica, which has also received payouts for previous storms like Tropical Cyclones Beryl, Eta, and Zeta.
Since starting in 2007, CCRIF has provided 82 payouts totaling $483 million to its members, including 24 countries across the Caribbean and Central America. The group operates out of the Cayman Islands and focuses on reducing the financial impact of hurricanes, earthquakes, and heavy rainfall through fast insurance payments.
As Jamaica recovers from Hurricane Melissa, these funds will be vital in getting the island back on its feet. Insurance estimates suggest the storm caused billions in damages, making the CCRIF payments a timely source of relief for the government and people.