The Caribbean Catastrophe Risk Insurance Facility (CCRIF) continues to produce positive investment returns, “based,” it said, “on its diverse investment portfolio and conservative approach to investment.
“These returns have allowed the CCRIF to increase its claims-paying capacity and facilitate a planned decrease in the pricing of coverage available to members for the 2009 policy renewal period.”
William Dalziel, Executive Director of London and Capital, the CCRIF’s Asset Manager, explained; “We recognize that as a Caribbean facility mandated and designed to limit the financial impact of catastrophic hurricanes and earthquakes on Caribbean countries, balancing the need for capital preservation and capital growth is of paramount importance. We have worked closely with CCRIF to design a bespoke portfolio which has been very responsive to evolving market conditions. By conservatively investing the Facility’s funds in liquid assets we have achieved positive returns and ensured that funds are available whenever a member government may need to access it.”
The bulletin noted that the fund has built confidence through its adherence to “capacity, viability and fiscal soundness.” As a result it has received support from “key regional and international multilateral agencies and countries.” The European Union recently joined the CCRIF’s 16 member governments, Canada, the World Bank, the United Kingdom, Ireland, France, Bermuda and the Caribbean Development Bank in donating to the Facility’s reserve pool as an expression of this confidence.
The EU contributed €12.5 million ($16.5 million) to bring the CCRIF’s fund’s total to over US$65 million, “thereby further enhancing the claims paying capacity of the Facility.”
The bulletin also noted: “Although the current economic crisis has had a severe impact on a number of international and regional insurance companies and other financial institutions, the CCRIF continues to grow, expand and remain relevant to the needs of its members. Indeed the CCRIF is not simply another insurance company but instead is part of the wider fiscally-responsible financial infrastructure that guides pre-disaster planning and aids post-disaster recovery within the Caribbean.”
Dr. Simon Young, CEO of Caribbean Risk Managers Ltd, Facility Supervisors of the CCRIF added: “The Facility’s sound regulatory and fiscal foundations, which define and drive the operational framework of the CCRIF, guarantee that it will remain viable even during times of economic downturn, when it becomes even more necessary as a risk management tool. The CCRIF is at the forefront of an innovative, proactive and integrated approach to disaster risk management, forming a necessary part of a long term approach by Caribbean governments to addressing the risks associated with natural hazards.”
Source: Caribbean Catastrophe Risk Insurance Facility – http://www.ccrif.org
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