Caribbean Catastrophe Risk Insurance Facility SPC
A pooled parametric insurance facility covering Caribbean and Central American states against cyclones, earthquakes and excess rainfall. The annual reports document triggered payouts, the underlying models and coverage performance. A textbook case of sovereign parametric risk transfer.
Coverage based on parametric triggers calibrated on hazard models, with payout driven by a physical index rather than loss adjustment. Payout speed is the advantage; basis risk between index and actual loss is the documented limitation.
Use as a case study of sovereign parametric cover and basis risk, and to document risk transfer in exposed markets. Relevant for parametric and emerging-markets articles.