Jamaica to Receive Record US$70.8 Million CCRIF Payout Following Hurricane Melissa

An image contributed showing destruction in Black River, St. Elizabeth, Jamaica.

By Val Matthias. Updated 10:44 a.m., Sunday, November 1, 2025, Atlantic Standard Time (GMT-4).

The Caribbean Catastrophe Risk Insurance Facility (CCRIF SPC) has announced a historic payout of US$70.8 million (J$11.4 billion) to the Government of Jamaica following the devastation caused by Hurricane Melissa in October 2025.

The USD $70.8 million marks the largest single payout in CCRIF’s history, underscoring the growing importance of parametric insurance in climate-vulnerable regions.

The payout was triggered by CCRIF’s parametric insurance model, which calculates disbursements based on the intensity and location of natural hazards rather than on physical damage assessments. Funds are expected to be transferred within 14 days, pending final model verification.

“This marks the largest single payout in CCRIF’s history and is a powerful demonstration of the organization’s parametric insurance model,” said CCRIF CEO Isaac Anthony in a statement released on 31 October. “It reflects our commitment to speed, transparency, and fiscal responsiveness in times of crisis.”

Hurricane Melissa caused widespread damage across Jamaica, particularly in the western parish of Westmoreland, where aerial footage showed flattened homes, flooded roads, and disrupted infrastructure. The payout is expected to support immediate recovery efforts, including emergency services, shelter, and public health interventions.

The announcement was welcomed by regional leaders and climate resilience advocates. “This payout is not just a financial transaction it’s a lifeline,” said Dr. Mark Bynoe,Caribbean climate finance expert. “It demonstrates the value of proactive risk financing and regional solidarity.”

CCRIF SPC, established in 2007 with support from the World Bank and donor partners, provides parametric insurance coverage to 23 Caribbean and Central American governments. Jamaica holds policies for tropical cyclones, excess rainfall, and earthquakes.

The payout also reinforces calls for expanded access to climate risk insurance across Small Island Developing States (SIDS). “As climate events become more frequent and severe, mechanisms like CCRIF must be scaled and supported,” said UNDP Caribbean Representative Denise Antonio. “Jamaica’s experience is a case study in preparedness and partnership.”

This record breaking payout follows previous CCRIF disbursements to Jamaica, including US$2.5 million after Hurricane Ida in 2021 and US$12.8 million after Hurricane Sandy in 2012.

Source CCRIF.org

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