NASSAU — Hurricane Sandy caused up to $20 million in losses to government, while privately insured people are expected to claim losses between $50 million and $100 million, according to a regional insurance body.
The Caribbean Catastrophe Risk Insurance Facility, which is a non-profit risk pooling facility owned and operated by Caribbean governments, said government losses were too modest to qualify for a payout from the insurance body.
However, Nick Grainger, assistant vice-president of risk management of Caribbean Risk Managers, the facility supervisor of CCRIF, pointed out that most of the insured properties are privately owned.
“The insured losses are expected to be more than that of [Hurricane] Irene, which saw the industry pay out between $40 million to $50 million in claims, but [aren’t expected to exceed] $100 million at this time,” Grainger said during a telephone interview yesterday.
A CCRIF report on losses caused by Sandy said, “The preliminary runs of the CCRIF loss model generated modest government losses in the affected countries, Jamaica and The Bahamas, which in both cases was below each country’s trigger level and therefore no payout will be due.”
Grainger would not reveal the specific amount of damage needed to trigger the policy.
Explaining how losses are calculated, Grainger said the CCRIF provides coverage for tropical cyclones with respect to wind and storm surge and not flood events as a result of excess rainfall. (Nassau Guardian)