Bermuda is one of sixteen member governments of the Caribbean Catastrophe Risk Insurance Facility (CCRIF) that have renewed their hurricane and earthquake insurance for the 2013/14 policy year that started June 1, the organisation has announced.In a statement CCRIF said: “In light of the budgetary constraints felt by countries across the region, CCRIF sought again this year to minimise premium costs.”CCRIF also announced they have added a new excess rainfall product to its portfolio of offerings to Caribbean governments for 2013/14.They said: “CCRIF recognises that rainfall is a leading cause of damage in the Caribbean — not only during hurricanes but throughout the year, and is seeking ways to enable countries in the region to obtain this coverage.“Earlier this year, CCRIF, in collaboration with the Caribbean Development Bank, held a meeting with international development partners to explore ways in which they could support the roll-out of this product. These donors were very interested and committed to examine how they could provide support.“This product specifically covers extreme rainfall events, from both cyclonic systems and from non-cyclonic systems. It should be noted that rainfall is not included in CCRIF’s current hurricane policies, which trigger based on damage from wind and storm surge.”CCRIF explained for the 2013/14 policies, they had provided a 25 percent discount on premiums, because no payouts were made by them, resulting in an underwriting surplus for the organisation, which is run as a not-for-profit entity. Countries could also apply a portion of their participation fee — a deposit paid when they initially became a CCRIF member — toward their premium payment and had the option to lower the minimum attachment point for hurricanes from a fifteen-year to a ten-year return period.“These all led to a reduction in the effective cost of coverage to countries this year by at least 25 percent, but in some cases up to 50 percent,” they stated.CCRIF has made eight payouts totalling over US$32 million to seven governments since 2007 on their hurricane or earthquake policies. “All payouts were transferred to the respective governments within 14 days after each event.”The Bermuda Government contributed to the funding of CCRIF, which was developed by the Japanese Government, and capitalised through contributions to a multi-donor Trust Fund including Bermuda, as well as the Government of Canada, the European Union, the World Bank, the governments of the UK and France, the Caribbean Development Bank and the Government of Ireland, and through membership fees paid by participating governments.CCRIF explained they are a not-for-profit risk pooling facility, owned, operated and registered in the Caribbean for Caribbean governments. “It is designed to limit the financial impact of catastrophic hurricanes and earthquakes to Caribbean governments by quickly providing short-term liquidity when a policy is triggered.“It is the world’s first regional fund utilising parametric insurance, giving Caribbean governments the unique opportunity to purchase earthquake and hurricane catastrophe coverage with lowest-possible pricing.“CCRIF represents a paradigm shift in the way governments treat risk, with Caribbean governments leading the way in pre-disaster planning.”