The Government has renewed Jamaica's policies with the Caribbean Catastrophe Risk Insurance Facility (CCRIF) for US$6.1 million for the 2017/18 fiscal year.
According to the 2017/18 Fiscal Policy Paper Interim Report, the renewals cover eventualities resulting from tropical cyclones, earthquakes and excess rainfall.
The paper, which was recently tabled in the House of Representatives by Finance Minister Audley Shaw, indicates that the renewals were necessary in light of the intense 2017 Atlantic Hurricane Season.
Shaw noted that it was necessary given Jamaica's exposure to natural disasters.
Meanwhile, Jamaica is expected to benefit from two special features that the Caribbean Catastropher Risk Insurance Facility has developed in relation to the policies for tropical cyclones and earthquakes.
These are the reinstatement of sum insured cover, and the aggregate deductible cover.
According to the Fiscal Policy Paper, these features will allow CCRIF member countries to access coverage beyond the limits of their policies, and are designed to supplement the existing tropical cyclone and earthquake policy structures.
These features will provide payouts where the main policy would not provide coverage.