Haitian government to receive max CCRIF payout, but country 'horribly underinsured'
Business News Americas, 14 January 2010
The government of Haiti will receive the maximum US$8mn payout from its coverage with the Caribbean Catastrophe Risk Insurance Facility (CCRIF), but overall the country is "horribly underinsured," Matthew Pragnell, CEO of Caribbean insurance brokerage services group CGM Gallagher, told BNamericas.
Because of the low insurance penetration in the country, there will only be minimal insured losses in Haiti and the event will likely not even constitute a major global insurance loss event, according to CaribRM CEO Simon Young.
"There's a general distrust of insurance companies [in Haiti], because they're just not able to respond on large claims let alone a catastrophe of this nature," the executive, who is based in Jamaica, said, noting that the tragedy would likely push along some efforts in microinsurance from groups like the World Bank.
"Microinsurance will have more urgency, but you have to give the consumer the wherewithal to be able to buy it," Pragnell said. "[Haiti's] going to have to have enormous donor support [to begin recovery from the earthquake]."
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