Controversial policy renewed

| 08/06/2009

(CNS):  Despite the failure of the Caribbean Catastrophe Risk Insurance Facility to pay up in the wake of Hurricane Paloma last year and the resulting controversy, the government has still renewed the policy, along with the fifteen other regional countries in the pool. The premium was reportedly reduced by 10% this year because of the global financial crisis. Last year when it failed to trigger over the impact of Paloma, the then PPM government said it needed to review Cayman’s continued participation.

The policy was renewed on 1 June, the start of this year’s hurricane season, with the newly reduced premium. CNS has contacted the Financial Secretary’s Office to see if the Cayman Islands has altered the arrangements it had, and whether the Sister Islands would be covered in future. Following Paloma’s strike on Cayman Brac, the CI government discovered that the payment is only triggered when the damage caused by the catastrophe, on this occasion a hurricane, has a direct impact on the areas of economic activity. Given that Paloma hit Cayman Brac, it therefore did not payout as the winds hitting George Town during Paloma were not high enough to make a claim.

The insurance pool did, however, pay out more than $6 million last year to the Turks and Caicos Islands in the aftermath of Hurricane Ike, and in 2007 it paid $1 million to Dominica and St. Lucia after a magnitude-7.4 earthquake shook the Eastern Caribbean.

Participating governments are Anguilla, Antigua and Barbuda, Bahamas, Barbados, Belize, Bermuda, Cayman Islands, Dominica, Grenada, Haiti, Jamaica, Montserrat, St. Kitts and Nevis, St. Lucia, St. Vincent and the Grenadines, Trinidad and Tobago and the Turks and Caicos Islands.

The insurance policy is based on the sixteen Caribbean nations and territories pooling their risk through the programme, cutting the individual premiums by about 40 percent. It was established by the World Bank in 2006 after Caribbean leaders had sought World Bank after Hurricane Ivan caused widespread devastation in the region in 2004.

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Comments (10)

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  1. Anonymous says:

    Amazing how cabinet could renew this contract, even though they had a lot of ranting with the previous LOGB as it did not cover Cayman Brac during Paloma… boy it amazes me how much this new Govt said they would do and is not doing….

    People wake up before its too late!!!

    • Anonymous says:

      From what I’ve read looks like the policy covers the entire Cayman Islands, it just has a high deductible, so damage on the Sister Islands alone wont cause a payout (correct me if I;m wrong?) . I still think its worth the money since we gonna need it one of these days when we have another Ivan and dont have the money!

  2. Afraid to Strap on a Pair Also says:

    CNS- Help me out here.  "The government still renewed the policy."  Would that be CIMA?

    CNS: No, it’s a Cabinet decision.

  3. Anonymous says:

    One of the reasons there have always been discourse amongst our people, is that Brackers have been singled out and they have used it to their advantage. 

    Yes the Brac received an overwhelming amount of support from GC after Paloma-but heck after Ivan I remember plane loads of people coming over with water and bread and the likes.  In fact when I traveled to the Brac for an extended get away for the kids and for their continuity in schooling-there was no bread.  Why, because they sent it all to Grand Cayman.

    As far as I am concerned, one is no better than the other.  If there is a disadvantaged group it is the Sister Islands!  Suck it up.  Grand Caymanians want their cake and eat it too.

    Give me the BRAC and Little Cayman ANY DAY over Grand Cayman-HANDS DOWN.



  4. annoymous says:

    To: IT s a very good policy,

    Let me say this as simply as I can so you can understand what I truly mean. Your comment is stupid and prejudical.   

    In the future when Global Warming causes flooding in areas in Grand Cayman that the sea obsorbs all the land mass or the majority of it, while Cayman Brac has a bluff and can sustain it’s self, I wonder then if we Brackers  should tell you to build your house on stilts like the people of the Bay Islands? 

    Get a life person, Brackers are the foundation builders of Grand Cayman, we got this island started and you should all be thankful to us for doing that.  I can only ascertain from your comments that you are not a true born Caymanian, and must be an imported one otherwise you would never make such prejudicial or lacking in knowledge and history of these islands like the majority of imported Caymanians, to make such comments.  Nevertheless, I am not excusing you for this either.  Anyone who has status should be versed in these islands history and culture not based on the number of years you lived here, that is a waste!!.

    CNS- you should really elminate comments from ignorant people as the only purpose they serve is to annoy many of us.

    • Anonymous says:

      "Cayman Brac is just as much a part of the Cayman Islands as Grand Cayman.  And I know that Grand Cayman had a good whine of lack of help after Ivan so don’t go thinking that only the Brac whines".

      AJ, the difference is that Grand Cayman got no help after Hurricane Ivan but greatly helped Cayman Brac after Paloma. The truth is that Cayman Brac get more than its fair share.

      Since you have been to the Brac you must know that it is Brackers who refer to people from Grand Cayman (as distinct from Cayman Brac, who are Brackers) as "Caymanians"! Apparently they consider that we are a strange, alien people.       

      To: annoymous (not verified) on Mon, 06/08/2009 – 13:47.

      I don’t why you are so uptight. I saw nothing ignorant in that post, or why the fact that Cayman Brac may be better off in the event of flooding from global warming is relevant to the issue.  

  5. AJ says:

    Help from who?  As I recal, after Ivan so many people flooded the Brac and the people there opened their arms as well as there houses to not only family and friends but to friends of friends.  Some of the children from Grand Cayman were sent to Cayman Brac to continue their schooling so as not to miss anything.  And I personally was on the receiving end of items coming from the Brac for our lack of preparation with Ivan.  Plus the Brac has an ageing population and is not much into the tourism as Grand Cayman is so they would not have as much money for recovery purposes.  Cayman Brac is just as much a part of the Cayman Islands as Grand Cayman.  And I know that Grand Cayman had a good whine of lack of help after Ivan so don’t go thinking that only the Brac whines.

    This coming from a young Grand Caymanian who wishes that people would stop thinking that Cayman Brac is an entirely different country with strange alien people who don’t speak the same language as us.  Remember united we stand, individually we fall.  God Bless the Cayman Islands!!!!

  6. Anonymous says:

    One thing that sure hit a raw nerve with people in Grand Cayman after Paloma is that we did not get nearly as much help as we needed when Ivan hit.  When Paloma hit, the Brac and Little Cayman got generators, money for gas, food, everything.  Why do we have to pay for their lack of preparation?  They need to do things for themselves like we did here and theymostly need to stop whining complaining about everything!

  7. The Shaft says:

    So this policy had it’s premium reduced by 10% while my home insurance policy had it’s premium reduced by 1.7% or a grand total of $64 per year savings. Well bend me over backwards and have your way why don’t you?

  8. It is a very good policy says:

    It is a good policy which protects the Cayman Islands in respect of a serious national disaster.  Practically that does only mean a direct hit on GC becuase  economically the Brac is immaterial – harsh but true.  Why should we lose the benefit ofthis important protection becuase it didn’t respond to Paloma when it was obvious to all that it was never meant to cover those types of circumstances?