GEORGE TOWN, Cayman Islands, CMC—The Government of Honduras received a payout of US$4,665,090 within 14 days of an excess rainfall event that affected the country from November 14 to 19.
Honduras joined CCRIF earlier this year, purchasing parametric insurance coverage for excess rainfall, effective June 1, 2024.
“On behalf of the Government led by our President Xiomara Castro, we express our gratitude to CCRIF for the disbursement received under our excess rainfall policy, which was triggered due to the impacts and damages associated with Tropical Storm Sara. Without a doubt, this type of instrument strengthens financial resilience and, compared to others, provides us with the ability to respond more immediately during an emergency’s humanitarian assistance and rehabilitation phase. Additionally, it enables us to reach our affected population promptly and effectively”, said Minister of Finance Christian Duarte.
In speaking to the payout, CCRIF CEO Isaac Anthony stated, “I am pleased that Honduras decided to join CCRIF, and I look forward to continuing to engage with the Government as it accesses CCRIF parametric insurance as an effective means of closing the protection gap and strengthening the country’s public financial management framework. Access to excess rainfall parametric insurance and accompanying payouts when the policy is triggered will allow the Government the flexibility to begin recovery efforts immediately following a natural disaster. Payouts received within 14 days of an event can be used to address the country’s most urgent needs, including helping vulnerable populations or rehabilitating critical infrastructure among other areas.”
According to reports, the rainfall event in Honduras significantly impacted roads, cutting off several communities and negatively impacting many people.
Since its inception in 2007, CCRIF has made 78 payouts, approximately US$390 million.
Since June 1, the start of the 2024/2025 CCRIF Policy Year, three of CCRIF’s four Central American members have received payouts for excess rainfall events.
Earlier in November, the Government of Panama received a payout from CCRIF totaling US$26.7 million.
At the start of the policy year in June, the Government of Guatemala received a full payout under its excess rainfall policy of US$6,376,184 following heavy rains that occurred in that country from June 13 to 19, 2024. On the Caribbean side, since the start of the policy year, CCRIF has made ten payouts totaling US$84.5 million following Hurricane Beryl.
The Government of Grenada received US$44 million under its tropical cyclone, excess rainfall, and COAST (for fisheries) policies. Grenada’s water and electric utility companies received payouts totaling US$11.5 million.
The Government of Jamaica received two payouts totaling US$26.6 million under its rainfall and tropical cyclone policies. Other governments—Trinidad and Tobago, St. Vincent and the Grenadines, and the Cayman Turtle Conservation and Education Centre (a government-owned tourist attraction)—also received payouts.
When CCRIF was established in 2007, it originally provided parametric insurance coverage for tropical cyclones and earthquakes to 16 Caribbean member governments.
Today, CCRIF has 30 members: 19 Caribbean governments, four Central American governments, three Caribbean electric utility companies, three water utility companies, and one Caribbean tourist attraction.
Today, CCRIF makes available six parametric insurance products—the original two and parametric insurance products for excess rainfall, the water and electric utility sectors, and the fisheries industry.
Nicaragua was the first Central American country to join CCRIF, followed by Panama in 2018 and Guatemala in 2019.
and then 