Jamaica to Receive Billions in Insurance Payout Due to Damage Caused by Hurricane Beryl
KINGSTON, Jamaica – The Jamaican government says its tropical cyclone policy with the Caribbean Catastrophe Risk Insurance Facility (CCRIF) has triggered a payment following the passage of Hurricane Beryl last week.
Hurricane damage in JamaicaFinance and Public Service Minister, Dr. Nigel Clarke, said the government received a Preliminary Modelled Loss and Policy Payment Report from the CCRIF, indicating that a payment of approximately US$16.3 million or J$2.5 billion would be made.
He said this policy represents the fourth level in the government’s multilayered disaster risk financing framework. Jamaica has strategically put in place a multilayered set of financial instruments to pre-finance the emergency response to and recovery costs of natural disasters.
Clarke said that while it is neither expected nor designed that all storms will trigger all instruments, the idea is that Jamaica should always be able to access resources from some instruments for every severe weather event.
Last week, Clarke said that the Jamaica government had initiated the process to access funds under a Contingent Credit Claim with the Inter-American Development Bank (IDB). The government also has a J140-billion Precautionary and Liquidity Line (PLL) with the International Monetary Fund (IMF)
The PLL is intended for countries with strong fundamentals and can be drawn down in the event of liquidity challenges emerging from natural disasters or economic shocks.
Clarke said that however, “at the current time, this facility is unlikely to be drawn [by the Government]” and in the coming weeks, will provide further updates on the status of additional disaster risk financing that is available.
In 2023, the government facilitated public consultations on the National Natural Disaster Risk Financing Policy (NNDRFP) that is intended to assist in improving Jamaica’s resilience in handling the aftermath of disasters and adequately planning and preparing, financially, for these events.
It provides for pre- and post-disaster measures, and focuses primarily on planning for and ensuring adequate financial capacity to address fallouts.
