News of St. Maarten joining the Caribbean Catastrophic Risk Insurance Facility (CCRIF) was generally well-received. There can be little doubt after the past three decades or so that the island is prone to tropical weather systems.
From a regional point of view too spreading the burden makes sense, as most of the area’s other territories are in the same boat. Pay-outs totalling US $130.5 million reportedly made to 13 members since the fund was established in 2007, of which $62 million last year alone, would seem to confirm its value.
Inquiries from this newspaper showed the annual premium to be some US $790,000 due up front for maximum coverage. Good news is that in any case the first year will be paid from the Trust Fund at the World Bank made available by the Netherlands.
Some may question the wisdom of such a move when recent experience with record-strength Hurricane Irma showed the Dutch government will provide fast emergency relief in case of a natural disaster. They also made an early pledge for 550 million euros in assistance.
Nevertheless, an extra backup to address immediate cashflow issues that logically occur after a calamity of such magnitude is no luxury. It would better enable the local government to quickly help get the recovery going and alleviate suffering among the population.
The cost comes down to about $65,833 per month. However, exactly what that buys remains unclear, as “maximum coverage” was not specified.
It’s not a small amount by any means, but certainly seems like a worthwhile and justified investment. Still, one should keep in mind the future additional burden to the country’s already strapped budget once the Trust Fund runs out, as is the case with all continued expenses, including the hiring of 30 new officers at Immigration and 20 at Customs, for which long-term commitments are being made at this time.
