With technological advancements and globalisation increasing the Caribbean’s exposure to risks, CEO of CCRIF SPC Isaac Anthony is calling on Caribbean governments to improve their country risk management frameworks.

Speaking at the beginning of the two-day Caribbean Regional Risk Conference 2022 on Tuesday, April 6, Anthony said that the importance of risk management, especially in a post-pandemic world, is a timely issue that should not be ignored.

“Advances in technology, globalisation and deregulation have made economic social and ecological systems increasingly interconnected. In addition to opportunities for growth, this interconnectedness has created a set of risks that cross borders and can be part of a complex globally interconnected system,” he stated.

“Within our borders risks are rising. Risks associated with debt, inequality and poverty, crime and violence, unattached youth, rising, unemployment, ecosystem degradation, among others,” Anthony continued.

He added that the ongoing novel coronavirus pandemic was one such risk that caught countries across the region unaware, as it created a “socio-economic crisis of immense proportions” that disrupted lives and livelihoods while “exacerbating inequalities among disadvantaged and already vulnerable groups”.

Anthony surmised that if there was a comprehensive risk management framework in place before the pandemic, it would have helped countries to diminish the loss of lives and the socioeconomic impact of the contagion, which includes pushing more people below the poverty line.

Anthony also pointed out that having to juggle these diversity of risks have placed pressure on governments which have to also manage fiscal affairs and maintain infrastructure with limited resources.

“Notwithstanding, the multi-hazard environment that the Caribbean countries exist in requires a focus and a need for adjusting current risk management strategies among our member governments. I, therefore, call on government in the region to adopt more holistic view on how they approach risk governance and risk management,” the CEO said, adding that CCRIF stands ready to assist.

CCRIF is the first multi-country provider of parametric insurance, offering products that help countries access financing following devastating events such as cyclones and earthquakes.

In the aftermath of the 7.4-magnitude earthquake in Les Caye, Haiti, last year, the insurance provider paid out US$40 million to cover damages.

Anthony highlighted CCRIF’s 14-day payout policy, making it known that countries can receive payouts as soon as 14 days after triggering their policies.

Starting in 2007 with 15-member governments, the organisation has expanded its base to 22 members including an electric utility company. It has also expanded its portfolio of offerings to include insurance coverage for excess rainfall and protection of the fisheries and electric utility industries.

Anthony disclosed that CCRIF has plans to increase its portfolio even further as it is a “development insurance company.

“We provide products that enhance the overall development prospects of our current and future members,” he added.

As the organisation pushes for improved risk management in the region, the CEO said that it will continue partnering with the companies, NGOs and other civil society groups to improve the development of a risk management model in each country. Moreover, it will partner with universities across the region in research to improve adaptation to climate change and resilience.

So far, CCRIF has contracted The University of the West Indies to ascertain how Caribbean countries compare with others in international best practices in the area of country risk assessment. In addition, it has enjoyed a 15-year partnership with the Caribbean Development Bank in providing financial support.

“Under this country risk management project, we will make the necessary investments to create the enabling environment to build capacity and expertise among our member governments, supporting a more proactive approach to address both current and future risks,” Anthony stated.

“We will work with to develop our members’ tools such as the integrated all hazard risk management frameworks and promote the institutionalisation of country risk coordinators. These country risk coordinators will act as a central point of contact for the purpose of managing the complete portfolio of multiple area risks that our members are exposed to,” he continued.