News - Caribbean hurricane fund launched
Posted on November 7, 2007 in the Finance insurance category
The development body is launching an insurance fund designed to enable countries to finance key services in the aftermath of a natural disaster.
Countries set to benefit include the Bahamas, Barbados, Montserrat, Trinidad and Tobago and Jamaica.
Hurricanes are estimated to have cost the Caribbean up to $16bn since 1979.
Reducing risk
Hurricane Ivan, which struck the region in 2004, cost an estimated $800m in losses and raised questions about the speed of the response from the business dc health insurance small community.
In this and other similar disasters, it has taken months for donor countries to raise and deliver emergency funding.
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 One of the gaps in the current approach to natural disaster is after a hurricane or an earthquake hits  Caroline Anstey, World Bank
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The new initiative, set to be unveiled on Monday, would provide a standing fund of up to $50m which countries could draw upon in the event of future incidents.
Countries would have to pay annual premiums into the fund, as well as a one-off entry fee, in order to access any money.
The level of financial loss insurance safecos premiums will depend on a country’s risk profile and could range from about $200,000 to $4m, the Bank said.
Funding salaries
The fund’s structure is designed to reduce the risk facing individual countries. World Bank donor nations, such as the US, UK and France, are not expected to provide any direct funding themselves.
“One of the gaps in the current approach to natural disaster is after a hurricane or an earthquake hits, a government is dependent on trying to get support from donors,” said Caroline Anstey, the World Bank’s director for the Caribbean region.
“That period is an extremely important one, to allow the california business auto insurance to carry on working to pay salaries.”
According to its own forecasts, the World Bank believes hurricanes will hit the region every two and a half years.
Read source of it on the News - Caribbean hurricane fund launched site
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