Hurricane Maria taught us many lessons; one of the most valuable being, that having coverage for property is essential to bouncing forward following the occurrence of a hurricane or natural disaster. Natural disasters like hurricanes and storms can cause severe damage to homes and commercial buildings, resulting in costly repairs and can substantially impact livelihoods.
With the hurricane season quickly approaching, the Flexible Hurricane Protection (FHP) developed by CREAD in collaboration with its partners, and piloted over the last two years, is now being launched nationally under the banner “Hurricane protection made just for you.” It is tailored to benefit all Dominicans, providing protection for property and livelihoods. The FHP is a parametric product which means that the policy pays out based on specific events occurring rather than on assessment of damages to an underlying asset.
On Thursday 27th April, 2023 the national roll out of the FHP was announced in a press conference hosted by the CORP-EFF Insurance Co. Ltd, to inform Dominicans on the benefits to hurricane protection, and the availability of the FHP to reduce their risks.
The FHP is now being sold by the CORP-EFF Insurance Co. Ltd and is designed to reduce the stresses associated with managing the risks and damaging effects following hurricanes and storms. Protection is provided against tropical storms ranging from minor category 1 to catastrophic category 5 weather systems. Dominicans adversely affected by a hurricane or storm can expect to receive automatic payouts, once the parameters for the FHP are triggered. To purchase a policy, interested persons can visit the CORP-EFF insurance website and access the FHP portal to select their policy and premium options. Once a selection is made, premiums can be paid for in full or in installments. Once paid in full, a digital contract will be issued and
securely stored online. The policy will run for a period of one year – June 1st to May 31st of the following year.
The technology employed allows for the continuous monitoring of weather systems in the region. If a storm comes within an agreed proximity to Dominica, then this triggers a payout to a policy holder without the need to file a claim or to have damage assessed. The policy is referred to as ‘flexible’ because it allows policy holders to use the funds received to cover lost income, replace damaged equipment or crops, rebuild their business or carry out quick repairs to their homes. There is certainty in payout, as this is predetermined based on the policy option selected. Further, if a triggering event occurs policy holders can expect to receive their funds within 15 days.
After Hurricane Maria, only 14% of assets were insured leaving many Dominicans without the support to bounce back faster. To ensure that all Dominicans have an opportunity to access the coverage required to protect their assets, CREAD was also able to secure grant funding from the Howden Group to enable CORP-EFF to provide a discount on premiums to approximately 250 of the first persons who purchase a policy.
Speaking at the press conference, CREAD’s Resilience and Planning Consultant Samuel Carette expressed his excitement in collaborating with CORP-EFF Insurance Co. Ltd to deliver the FHP to Dominicans. He indicated that until now there has not been a suitable solution to treat losses particularly for small farmers and small businesses from tropical weather systems. Mr. Carette also encouraged Dominicans to embrace the FHP as the solution, so as to make it a success not only in Dominica but the Caribbean by extension. He further indicated that the model will also be offered simultaneously in the ‘’Spice Isle” Grenada.
He expressed his gratitude to the partners who have collaborated to ensure that the FHP was made available to Dominicans. Mr. Carette also made the commitment that CREAD would continue to work with CORP-EFF to ensure that the initiative would be a great success.
The policy is ably supported by London-based Global Parametrics, an industry leader in developing and offering risk transfer products that offer parametric insurance.
To conclude the proceedings, a presentation of the customer interface was facilitated by Mr. Jeremy Collymore who provided insight on the ease of navigating the platform and offered a step-by-step navigation of the platform.
