Grenada Electricity Services Ltd. (Grenlec) has received a welcome USD 9.3 million insurance payout from the Caribbean Catastrophic Risk Insurance Facility (CCRIF) in the aftermath of Hurricane Beryl. This payout marks Grenlec’s first payout under the CCRIF, a parametric insurance the Company first subscribed to last year to mitigate financial losses caused by catastrophic events.
Hurricane Beryl, which recently swept through the region, caused significant damage to infrastructure, affecting electrical distribution networks across our tri-island state. Damage in the north of mainland Grenada and the electricity infrastructure in Carriacou and Petite Martinique (PM) were particularly severe, with extensive damage to poles, transformers, conductors and lines.
The CCRIF provides parametric insurance coverage to Caribbean governments and utilities, offering short-term liquidity within 14 days of an event. Utilities pay premiums to access this coverage, which is triggered when predefined criteria related to adverse weather conditions are met.
“Joining the Caribbean Catastrophic Risk Insurance Facility in 2023 was a strategic decision aimed at bolstering our resilience against natural disasters,” said Clive Hosten, Acting General Manager of Grenlec. “This payout not only underscores the importance of proactive risk management but also ensures that Grenlec can expedite recovery efforts, restore critical services to our customers and enhance resilience.”
Funds from the insurance payout will be used in restoration efforts and to build resilience in electrical infrastructure throughout Grenada, Carriacou and Petite Martinique. The Company’s focus on building resilience aims to enable the power grid to rapidly recover in the event of damage or power outages, and quickly restore normal operations.
Grenlec extends its gratitude to the Government of Grenada and the CCRIF team for their swift response within the stipulated 14-day period and their support during this challenging time. The Company remains committed to maintaining reliable electricity services and enhancing disaster preparedness.
Cheque presented by the Caribbean Catastrophic Risk Insurance Facility (CCRIF) in the aftermath of Hurricane Beryl
