The Caribbean Catastrophe Risk Insurance Facility (CCRIF), the Caribbean’s first joint reserve fund for earthquake and hurricane catastrophes, is likely to make a payment to the governments of St Lucia and Dominica as a result of Thursday’s earthquake.

The earthquake occurred close to Martinique, according to the US Geological Survey (USGS).

The USGS information sets the parameter which activates insurance policy terms. At the interim and final calculation times, USGS data in the public domain will be used to calculate actual payouts made under policies held by governments. The final payout amount to each country will be proportional to the coverage purchased by the respective governments.

The earthquake was felt throughout the Leeward and Windward islands, as far north as Anguilla and southwards to Guyana.

“The CCRIF was designed to provide its member governments with quick relief in the case of catastrophic earthquake or hurricane loss. Based on initial data from the USGS this earthquake exceeded policy attachment points in two of the 13 member nations that bought earthquake coverage,” Dr Simon Young, supervisor of the CCRIF, said.

“The precise location estimated by USGS has been refined several times since this event occurred and may be further revised before the official interim and then final payout calculations are made by CCRIF and verified by Pricewaterhouse Coopers (Cayman) 13 and 27 days from the date of the notice.”