GRAND CAYMAN, Cayman Islands — The Caribbean Catastrophe Risk Financing Facility (CCRIF) has made payouts totalling US$30.6 million to the government of Nicaragua following the passage of Tropical Cyclones Iota and Eta, which made landfall as Category 4 hurricanes along the Nicaraguan coast within two weeks of each other in November.
Both hurricanes resulted in landslides and flooding, displacing thousands, with Nicaragua’s National Disaster Prevention System (SINAPRED) reporting that at least 16 persons died and many are still missing. CCRIF expresses sympathy to all those who have lost loved ones and knows that these payouts, whilst important to help with addressing immediate needs and closing the protection gap, will never be able to compensate for the injuries and loss of life.
The events of the 2020 hurricane season and their impacts on Central American countries are very much reminiscent of the 2017 Atlantic hurricane season which battered many Caribbean countries resulting in the Caribbean Community (CARICOM) declaring action to make the Caribbean the first climate-resilient region in the world.
According to CCRIF chief executive officer, Isaac Anthony:
“We would like to play our part in creating an environment for greater levels of South-South cooperation between the Caribbean and Central America as they confront similar natural hazards and have similar vulnerabilities. We are committed through our upcoming strategic planning sessions in 2021 to create strategies and activities beyond those focused on financial protection that would help to bring these two regions together to share best practices, lessons learned and experiences in disaster risk management and climate change adaptation that would help to advance the sustainability agendas of both regions”.
CCRIF has made a total of 48 payouts to 14 of its member governments, totalling approximately US$194 million – all within 14 days of the event. CCRIF’s payouts may be relatively small compared to the overall cost of rebuilding but their value is in providing quick liquidity to governments immediately following a natural disaster, allowing them to address the most immediate needs. Based on assessments undertaken by CCRIF, more than 65 percent of members’ payouts have been used by governments to address the needs of their most vulnerable citizens for food, water, medication and shelter following a natural disaster.
Hurricane Iota was the last hurricane in the record-breaking 2020 Atlantic hurricane season, which was the most active Atlantic hurricane season on record in terms of the number of tropical cyclones – recording 30 named storms, 13 hurricanes, and 6 major hurricanes. Indeed, this is the first time in recorded history that two Category 4 hurricanes have affected the same location within two weeks.
