Haiti Catastrophe Insurance

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The Haiti Catastrophe Insurance Project's objective is to reduce Haiti's financial vulnerability to natural disasters through insurance coverage against earthquakes and hurricanes. This will be achieved by providing financing to Haiti to allow it to join the Caribbean Catastrophe Risk Insurance Facility (CCRIF) and purchase financial protection against catastrophic earthquake and/or hurricane events. Without the IDA grant, it is unlikely that Haiti would join this pilot initiative, which represents the first entity created to protect small island states from the financial impact of natural disasters. The project has two main components with the first being to assist Haiti in joining the CCRIF through the financing of the entrance fee. This fee is equal to the first year’s insurance premium of US2.57 million. The second project component is payment of annual insurance premium which will assist Haiti in purchasing the catastrophe insurance coverage offered by the CCRIF during the first three years. As such, the project supports the establishment and viability of the CCRIF.