Natural Disaster Fund allocates more risk capacity to Corp-EFF parametric hurricane product

The Natural Disaster Fund (NDF), the risk capital facility that allocates its funds to support parametric insurance arrangements and is managed by CelsiusPro’s Global Parametrics team, has increased its risk capital allocation to a Caribbean parametric hurricane product.

The parametric insurance product is provided by Corp-EFF Insurance Company Limited, and the Natural Disaster Fund (NDF) has provided US $4.7 million to help expand its Flexible Hurricane Protection (FHP) programme for the 2025 Atlantic hurricane season.

Global Parametrics originally designed and structured the Flexible Hurricane Protection product back in 2021 and it’s been sold by Corp-EFF Insurance Company since 2022.

The parametric product offers coverage options from tropical storm to Category 5 hurricane coverage and has been designed for micro, small and medium sized enterprises in Dominica and Grenada.

The product proved its value after hurricane Beryl in 2024, when the Natural Disaster Fund (NDF), which is a public-private partnership funded by UK and German governmental entities and managed by Global Parametrics, made US $1.45 million in payouts in Grenada after a windspeed cat-in-a-polygon parametric arrangement was triggered by hurricane Beryl.

Now, the capacity commitment has been increased to enable this parametric hurricane insurance product to be more widely adopted.

Recall that, reinsurance firm Hannover Re also provides capacity to augment the NDF’s work.

“We have been delighted to witness the growth of the FHP programme and observe the tangible contribution towards building resilience against tropical storms and hurricanes in the OECS. We look forward to the next phase of this partnership and collaborating to further integrate the FHP into the regional financial system,” explained Mark Rüegg, CEO CelsiusPro Group.

Phoenix Belfield, Chairman Corp-EFF Insurance Company Limited added, “We’re seeing the impact that’s happening on the ground, and nothing sells better than when you’ve seen how others have been impacted by parametric protection. This speaks to the heart of the Caribbean problem, agriculture, social gaps, income gaps, and, of course, this is a disaster risk solution that really helps.

“At Corp-EFF Insurance, we are committed to delivering protection with purpose, especially to those most exposed to climate risk. This strategic partnership reflects our long-standing belief that insurance must be simple by design to provide economic stability and dignity to the vulnerable communities we serve. We look forward to scaling this solution and redefining resilience in the Caribbean.”