CCRIF SPC Signs Multi-Million Euro Agreement with Global Shield Solutions Platform

CCRIF SPC joining with other risk pool officials in signing multi-million Euro agreement.

Introduction to the Agreement

FRANKFURT, Germany, CMC—The Catastrophe Risk Insurance Facility of the Caribbean and Central America (CCRIF SPC) has joined three other regional risk facilities in signing an agreement with the Global Shield Solutions Platform (GSSP) for Euro 4.7 million (one Euro = 1.29 cents) to advance the implementation of their joint memorandum of understanding (MoU) signed in 2022.

CCRIF SPC, along with the African Risk Capacity Limited (ARC Ltd.), the Pacific Catastrophe Risk Insurance Company (PCRIC), and the Southeast Asia Disaster Risk Insurance Facility (SEADRIF), signed the accord, which they termed “a major step toward global collaboration on disaster risk finance,” supporting joint solutions, capacity building, and knowledge-sharing across continents.

Benefits and Impact of the Agreement

“This joint agreement heralds an exciting new beginning in the evolution of CCRIF and other regional risk pools. It represents a game-changer in how we deliver on our mandate as development insurers,” said CCRIF SPC chief executive officer Isaac Anthony.

“By providing a stronger platform for collaboration, CCRIF will be better positioned to support the Caribbean and Central America in closing the protection gap while enhancing regional resilience to climate risks,” he added.

According to a CCRIF SPC statement, the agreement signed on April 9 represents a significant step forward in strengthening collaboration among the regional risk pools. It underscores their shared commitment to enhancing financial resilience and promoting sustainable growth.

Key Objectives and Initiatives

Under the agreement, GSSP, via its Global Shield Programme for Resilient Risk Pools (GSRRP), will provide funding to support the regional risk pools in implementing their joint request for CDRFI Support.

The project aims to establish a joint risk pool solution and learning network, set up a global facility for risk data and analytics information sharing and evaluation, establish a risk pool employee exchange program, and increase risk pools’ joint advocacy.

“The grant agreement marks a significant milestone in advancing cooperation among the Regional Risk Pools. In 2023, the GSRRP was launched by GSSP as a single access route to pooled funding, providing CDRFI support programs tailored to Regional Risk Pools’ specific needs and circumstances.

“A study on Optimisation Options for Risk Cedine and Retention conducted by WTW and commissioned by GSSP identified potential support measures to the GSRRP and Regional Risk Pools to optimize their exposure to the private capital/reinsurance markets. ”

The statement said that recommendations included investment in strategic technical support and the phased development of a dedicated global facility. It added that these outcomes were reflected in the joint request for CDRFI Support, marking a major step forward in turning evidence-based learning into impact.

Conclusion

The signing of the agreement between CCRIF SPC and GSSP marks a significant milestone in the evolution of regional risk pools and their collaboration on disaster risk finance. The agreement is expected to have a positive impact on the Caribbean and Central America, enhancing regional resilience to climate risks and promoting sustainable growth.

Frequently Asked Questions (FAQs)

Q: What is the purpose of the agreement between CCRIF SPC and GSSP?

A: The agreement aims to advance the implementation of the joint memorandum of understanding (MoU) signed in 2022 and to support the regional risk pools in implementing their joint request for CDRFI Support.

Q: What are the benefits of the agreement?

A: The agreement is expected to enhance financial resilience, promote sustainable growth, and support the Caribbean and Central America in closing the protection gap and enhancing regional resilience to climate risks.

Q: What are the key objectives of the project?

A: The project aims to establish a joint risk pool solution and learning network, set up a global facility for risk data and analytics information sharing and evaluation, establish a risk pool employee exchange program, and increase risk pools’ joint advocacy.