Haitian Quake Could Mean “Significant Payout” From CCRIF
1 min read

Haitian Quake Could Mean “Significant Payout” From CCRIF

Haiti will likely have a significant claim against the Caribbean Catastrophic Risk Insurance Facility (CCRIF) following the recent earthquake, according to Simon Young, PhD, CEO of CaribRM.

CaribRM is a risk consulting firm that focuses on the Caribbean region and also acts as facility supervisor for the CCRIF.

“We’ve already done a preliminary calculation and Haiti could see a significant payout,” says Young. “Haiti did not have as much earthquake cover as hurricane, but that is typical of the region.”

Earlier today, the United States Geological Survey reported that a magnitude 7.0 quake struck about 10 miles southwest of the Haitian capital Port-au-Prince.

The CCRIF was created in 2007 as a parametric catastrophe pool by 17 regional governments and the World Bank.

Young described today’s earthquake as a fifty to one hundred year event for the northern section of the Caribbean Arc, a geological boundary within the region.

Given that the quake occurred in a developing region, Young said he expects a majority of recovery and rebuilding funds to come from the public sector.

However, he adds that today’s event will also cause a reconsideration of earthquake risk in the Caribbean.

“There will be a lot of rethinking about the role of insurance and risk transfer and quake risks, especially given it was a very quiet hurricane season,” Young says.

Enjoying these posts? Subscribe for more

Subscribe now
Already have an account? Sign in
You've successfully subscribed to Risk Market News.
Success! Your account is fully activated, you now have access to all content.
Success! Your billing info is updated.