Grenada is benefitting from reduced premiums payable to the Caribbean Catastrophe Risk Insurance Facility (CCRIF) in 2020 and 2021.
This is made possible by the European Union which has provided a grant of US$11 million for premium support for Grenada and other Caribbean members of CCRIF.
The EU is providing the grant through its Regional Resilience Building Facility, which is managed by the Global Facility for Disaster Reduction and Recovery and the World Bank.
Forty percent of the EU’s grant for Grenada has been applied to the 2020-2021 CCRIF premium, reducing the amount payable by US$173,000. The remaining 60% will go towards the 2021-2022 premium.
Prime Minister and Minister of Finance, Dr. the Right Honourable Keith Mitchell, has welcomed the EU grant, saying it is a timely gesture. “He said, “Even as we continue to deal with the debilitating impact of the pandemic, Government must continue to fulfil its obligations and one such responsibility is payment of the CCRIF premium which is due at the start of the hurricane season. Grenada’s premium to CCRIF this year is US$1.4 million and the discounted premium that the EU grant affords us, will enable Government to reallocate existing resources to other priority areas. The Government of Grenada is very appreciative of all efforts by international donors and partners who are committed to helping us weather this crisis.”
CCRIF was created in response to Hurricane Ivan in 2004 and according to its website, it serves to limit the financial impact of natural hazards for governments by providing short-term liquidity when a policy is triggered. CCRIF provides parametric insurance policies for tropical cyclones, earthquakes, excess rainfall and the fisheries sector.
