Caribbean Development Bank News Release — December 9, 2021
The Board of Directors of the Caribbean Development Bank (CDB) has approved funding for the full premium for natural hazard insurance for Haiti. The Bank is providing US$6.9 million as a grant on a one-time request by the Haitian Government to cover the premium of the Caribbean Catastrophe Risk Insurance Facility Segregated Portfolio Company (CCRIF SPC) for the period 2021/22.
“Haiti faces serious challenges due to the combined shocks of natural disasters, the COVID-19 pandemic, climate change, political instability, and the heightened insecurity in several parts of the country, which contribute to financial uncertainty. The Caribbean Development Bank is supporting the Government and people of Haiti as they negotiate these times of unprecedented challenges,” said CDB Vice-President of Operations, Isaac Solomon.
Haiti suffered its latest disaster in August this year with the occurrence of a 7.2 magnitude earthquake epicentred in the southwest peninsula, close to Les Cayes. The event resulted in 2,248 deaths, 12,763 persons sustaining injuries, 329 persons missing, more than 52,950 houses destroyed, and over 77,000 damaged. This event triggered the largest single pay-out by CCRIF SPC, with a total of US$40 million.
Having been a member of CCRIF SPC since its start in 2007, Haiti partly covered its annual insurance premium since 2018. However, the Haitian Government is unable to contribute to the payment of the CCRIF SPC premium this policy year due to the impact of the ongoing COVID-19 pandemic and other social and economic challenges. Haiti is ranked among the world’s most hazard-prone countries, at risk for hurricanes, storms, floods, droughts, earthquakes, and landslides, losing an estimated 2% of annual gross domestic product on average between 1976 and 2020.