catastrophe policy
Guatemala receives US$6.4 million in insurance for the rains
Following the activation of a so-called parametric insurance contracted with an international financial organization to deal with disasters, the government received funds this week.
Guatemala received a payment following activating catastrophe insurance due to excessive rainfall with the World Bank. (Photo Prensa Libre: PL Archives)
A parametric insurance policy with the Caribbean Catastrophe Risk Insurance Facility (CCRIF) of the World Bank was executed this week and the government received a disbursement of US$6.4 million (regarding Q50 million), the entity reported.
“CCRIF SPC made a payment on 1 July 2024 of US$6 million 376 thousand 184 to the Government of Guatemala under its excess rainfall policy following the heavy rainfall that occurred from June 13 to 19,” states a press release sent from the Cayman Islands.
Furthermore, CCRIF expresses its condolences to the Government and people of Guatemala for the loss of life and the impacts on communities and infrastructure caused by this event.
“CCRIF is confident that the payment will provide a measure of financial support to assist the Government in its most urgent relief efforts. As CCRIF makes this payment today, it is closely monitoring the development of Tropical Cyclone Beryl, which is affecting a number of our members in the Caribbean,” the official statement said.
The new policy with CCRIF that the government has in place aims to cover all geographic areas, since the previous coverage only covered certain sectors. Meanwhile, the objective is to have financial resources when an emergency occurs due to excessive rainfall and to be able to respond to it immediately.
In the general budget, Guatemala allocates an amount of the policy that was paid to CCRIF for US$800 thousand (regarding Q6.2 million) and the last operation was recorded during May 2023.
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