manager London & Capital, which manages assets on behalf
of a growing client-base of offshore captive insurance companies,
focusing on capital preservation and absolute returns, has
been appointed to manage the reserves of the Caribbean Catastrophe
Risk Insurance Facility (CCRIF).
The Caribbean-owned, regional institution is the worlds
first regional disaster insurance facility.
London & Capital, which manages assets in excess of
£$3.4 billion (as at September 30, 2007), will manage
an initial mandate of £$35 million for the CCRIF,
rising to more than £$100 million over the next three
The CCRIF was established at the request of Caricom heads
of government, using funds pledged by the international
donor community and will provide the facilitys 16-member
governments with immediate liquidity if hit by a catastrophic
earthquake or hurricane.
Caribbean nations are highly vulnerable to natural disasters
and have limited options available to respond.
On average, one major hurricane affects a Caricom country
every two years.
Losses resulting from Hurricane Ivan in Grenada amounted
to 200 per cent of Grenadas GDP and were also significant
in Jamaica and the Cayman Islands.
Small states often depend on extensive financing from international
donors to finance post-disaster needs.
The CCRIF, which is based on a parametric insurance model,
allows participating countries to pool their risk and should
result in premium reductions of as much as 40 per cent.
Supervised by CaribRM, a risk management company specialising
in catastrophe modelling, the CCRIF has developed and established
the criteria on which damages will be paid giving it the
ability to settle claims expeditiously. This means that
unlike traditional insurance, loss adjusters do not need
to tally damage after catastrophe occurs, which can take
months or even years.