World Bank to launch Caribbean disaster insurance (Reuters)

World Bank to launch Caribbean disaster insurance
Sun 25 Feb 2007 5:30 PM ET

By Lesley Wroughton

WASHINGTON, Feb 25 (Reuters) - As scientists warn that climate change will
lead to stronger storms, the World Bank is launching on Monday the first
disaster insurance plan to offer emergency money to 18 Caribbean countries
immediately after they are hit by hurricanes or earthquakes.

The Caribbean Catastrophe Risk Insurance Facility (CCRIF) will allow stricken
nations to begin disaster response right away with the guarantee of access
to enough money to fund emergency measures.

A meeting of donor countries including Canada, Japan, Britain, France and
the European Union in Washington on Monday will seek to raise between
$30 million and $50 million in reserves for the regional facility, World Bank
officials said.

Until now, it usually has taken months after a catastrophe to raise emergency
funds from donor countries. Since 1979, hurricanes have caused more than
$16 billion in losses in Caribbean nations, according to World Bank data.

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