Disaster Financing Coverage at $130.6 Billion

Jamaica’s disaster financing coverage heading into the 2025 Atlantic Hurricane Season is valued at $130.6 billion.

Minister of Finance and the Public Service, Hon. Fayval Williams, who made the disclosure, advised that the country’s disaster coverage increased by $6.5 billion, since the passage of Hurricane Beryl last July.

“How much we can draw down on that depends on the severity of the disaster. Our disaster financing policy takes into consideration those events that are high frequency but low severity, such as floods, and these can be dealt with through budget reallocation or reserve and the contingency funds, to provide immediate resources for relief efforts,” she said.

She explained that for higher-severity, low-frequency events, such as hurricanes, the Government has to be prepared to use insurance instruments such as the Caribbean Catastrophe Risk Insurance Facility (CCRIF).

Mrs. Williams was addressing the National Disaster Risk Management Council Meeting held on Wednesday (June 4) at the Ministry of Local Government and Community Development on Hagley Park Road in Kingston.

She noted that the advantage of the catastrophe financing coverage Jamaica has in place is that it is parametric, meaning that there are predefined thresholds and payouts.

“So, if the thresholds are met, funds are triggered and the recovery work can get started almost immediately,” she said.

Mrs. Williams said that the Government is committed to strengthening its multi-layered National Natural Disaster Risk Financing Policy (NNDRF).

The NNDRF is the Government’s strategic guide to disaster risk financing, aimed at minimising the impact of disasters on the national Budget, the economy and the society, and ultimately enhancing the country’s fiscal and economic resilience to natural disasters.

“We understand our geographic location in a hurricane belt and that we need to be prepared well ahead of that, not thinking when we are in it what we are going to do, but we would have already had the plans and the financing in place to support that,” Minister Williams said.

For his part, Minister of Local Government and Community Development, Hon. Desmond McKenzie, gave Jamaicans the assurance that the Office of Disaster Preparedness and Emergency Management (ODPEM) is fully equipped, financially and otherwise, for the anticipated active hurricane season.

He implored Jamaicans to heed any advisories issued during the period.

“As we prepare for this hurricane season, over some 900 shelters have been inspected and are ready. The Ministry of Labour [and Social Security] has enough supplies,” Mr. McKenzie said.