Cayman Islands government is considering an agreement that would help speed recovery efforts in the event another hurricane or earthquake strikes the country.
Caribbean countries along with international donors and various organisations have set up a $47 million insurance pool to help soften the blow if disaster strikes. The programme is called the Caribbean Catastrophe Risk Insurance Facility.
The programme allows governments to buy catastrophe coverage similar to business insurance coverage, which lets companies continue operations by providing cash payments immediately following a disaster.
The World Bank, which helped set up the fund, has said participating countries would also save on insurance premium payments.
Leader of Government Business Kurt Tibbetts hasn’t definitively stated whether Cayman will sign up for the coverage, but he said Friday that the initial seed money for the fund ‘bodes well for its viability and continuity.’
Mr. Tibbetts said government was waiting for confirmation on a suggested premium rate of $1.5 million, which would provide $35.5 million in coverage for hurricanes, and $7 million in the event of a damaging earthquake.
He cautioned that the insurance payment plan is far from a done deal.
‘While that has been suggested, that is not final and agreed upon; and neither is the level of coverage final and agreed upon,’ said Mr. Tibbetts.
Discussions on whether Cayman and other British Overseas Territories would join the programme are expected to continue.
Caribbean community leaders asked the World Bank to help organise the insurance facility after Hurricane Ivan struck in 2004. The storm was blamed for 121 deaths in the Caribbean and southern United States.
U.S. damage estimates put the cost from Ivan at $8.5 billion.
Related Videos
