An image from Grenada Prime Minister Dickon Mitchell's visit to Petite Martinique and Carriacou on Sunday. (Photo: Office of the Prime Minister/Grenada

The category 4 storm left a trail of death and damage as it made its way through the Windward Islands on July 1, with the Grenada Grenadine islands of Carriacou and Petite Martinique and St Vincent and the Grenadines ‘ Union island severely impacted. 

CCRIF said that payout to Grenada will be made during this week, adding that Hurricane Beryl  totally devastated 90 per cent of all buildings on the islands of Carriacou and Petite Martinique. 

It said that there was also significant damage to the agriculture sector as well as the natural environment, including mangrove ecosystems. Electric utilities, mainly the transmission and distribution systems on both islands, also were significantly damaged. 

The north of mainland Grenada was also not spared the wrath of Hurricane Beryl, with damage to homes, the agriculture and forestry sectors, and electric utility transmission and distribution and water distribution systems. 

In extending its “deepest condolences” to the government and people of Grenada, CCRIF said it is well aware of the impacts on other CCRIF member countries in the region including St Vincent and the Grenadines and Jamaica. 

CCRIF said that its parametric insurance policies make payments based on the intensity of an event and the amount of loss calculated in a pre-agreed model caused by these events. 

It said the payout to Grenada on its tropical cyclone (TC) policy is the single largest payout by CCRIF. Until now, Haiti had the single largest payout from CCRIF, having received just under US$40 million, following the 2021 earthquake. 

“These payouts represent Grenada’s first payouts from CCRIF. I commend the Government of Grenada, which has always maintained that despite not receiving a payout, it understood the importance of financially protecting the economy in case a disaster strikes, as it would never want to see a repeat of Hurricane Ivan,” said CCRIF’s chief executive officer, Isaac Anthony. 

“Countries ought to treat parametric insurance for natural hazards like they treat health insurance. We buy health insurance because it is important to help safeguard our lives. However, we hope we do not need it but when we do, we have the peace of mind that it could help us deal with a more serious illness than a common cold. 

“Similarly, we do not want to be negatively impacted by natural hazards and be faced with natural disasters. However, in the case of CCRIF’s parametric insurance, the moment we really need it, it is available within 14 days of a triggering event.” 

Anthony said  CCRIF’s parametric insurance must be seen as a key component in helping countries to build back better and stronger to withstand future natural hazards, especially within the context of climate change”. 

CCRIF said that Hurricane Beryl is reminiscent of Hurricane Ivan 20 years ago, which impacted nine Caribbean islands. 

“Beryl impacted a similar number of countries, creating much destruction along its path.The impacts of Hurricane Ivan in 2004 brought into sharp focus among Caribbean governments, the need for quick liquidity following a natural disaster,” CCRIF said, adding that regional losses due to Ivan totalled over six billion US dollars. 

“There are, however, several important differences today compared to 2004. Countries such as Grenada, St Vincent and the Grenadines and Jamaica now all have access to liquidity from CCRIF within 14 days of the impacts of Beryl to begin the recovery efforts.” 

It said parametric insurance is not debt relief and does not add to a country’s debt stock. CCRIF has demonstrated that catastrophe risk insurance can effectively provide a level of financial protection for countries vulnerable to natural disasters. 

“Parametric insurance products are a key component in a country’s disaster risk financing (DRF) strategy and are designed to pre-finance short-term liquidity. CCRIF’s parametric insurance is helping to close the protection gap, reduce budget volatility, and allow countries to respond quicky to their most pressing needs, including providing support to the most vulnerable in their populations.” 

Since its inception in 2007, and prior to Beryl, CCRIF said it made 65 payouts totalling US$274 million to 17 members and is expected to make 10 payouts under Beryl totalling over US$75 million in the next few days thereby taking payouts to approximately US$350 million. 

It said that the government of St Vincent and the Grenadines will receive US$1.8 million, and the Trinidad and Tobago government will receive US$372,752 for the impacts of Beryl on Tobago. 

“Jamaica will also receive payouts, and these will be communicated later this week.