Counter Crisis: A brighter future for global disaster response?
Author: Center for Disaster Protection
In the third and final episode of this season of Counter Crisis, we turn to the Caribbean — a region on the frontlines of the climate crisis — to explore what a faster, smarter disaster response could look like.
When Hurricane Beryl tore through Grenada and St. Vincent and the Grenadines in July 2024, it left catastrophic damage in its wake: homes flattened, livelihoods destroyed, and communities overwhelmed. Yet just eight days after landfall, a record-breaking $55.5 million in pre-arranged insurance payouts was triggered through the Caribbean Catastrophe Risk Insurance Facility (CCRIF).
In this episode, Jeevan Vasagar speaks to Liz Riley, Executive Director of the Caribbean Disaster Emergency Management Agency, and Colin Bruce, Special Envoy at the International Committee of the Red Cross, about why pre-arranged financing could transform disaster response.
The early arrival of the hurricane season
Hurricane Beryl was the earliest Category Five storm on record, arriving well before the Caribbean’s usual hurricane season preparations were complete. Liz describes the extensive damage: up to 98% of buildings destroyed on some islands, major impacts on tourism, agriculture, and fisheries, and profound psychosocial effects on communities.
While CCRIF’s payouts offered crucial relief, they also revealed stark disparities. Grenada received $55.6 million, while St. Vincent and the Grenadines received just $1.9 million. As Liz explains, this gap reflects the structure of parametric insurance, where payouts depend on modelled thresholds like wind speed, not the actual damage on the ground.
Why pre-arranged finance matters
Despite its limitations, the Caribbean’s experience shows the value of pre-arranged finance in delivering funds quickly and predictably — when they are most needed. As Colin points out, it means governments don’t have to divert resources from essential public services to crisis response.
Yet today, less than 2% of international crisis funding is pre-arranged. The High-Level Panel on Closing the Crisis Protection Gap, supported by the Centre for Disaster Protection, has set a bold goal: to increase pre-arranged crisis financing tenfold by 2035. The aim is to address the difference between the expected crisis costs and the finance arranged in advance to cover them, the crisis protection gap.
Beyond Beryl
The Caribbean’s experience with CCRIF — the world’s first parametric risk pool — offers important lessons for other regions:
Governments need a deep understanding of how parametric products work, including thresholds and triggers, to use them effectively. Yet, insurance is just one piece: As Liz points out, governments need a suite of instruments — ranging from concessional finance to catastrophe bonds.
Data is critical for making the right decisions, but it’s not enough. Successful disaster finance also requires navigating political dynamics and power imbalances.
Liz also highlights the reality that often gets overlooked: it’s these smaller, repeated shocks that steadily erode resilience, destroy public infrastructure, and force governments to dip into already stretched domestic budgets.
Pre-arranged finance thus becomes not just a tool for emergency response, but a way of preserving long-term development gains.
If disaster financing is to keep pace with a changing world, it must be faster, smarter, and more equitable. As Colin emphasises:
“This is not about more money — although we would love to see more funding for disaster risk reduction. It's about using money more wisely, by ensuring it’s pre-arranged.”
For small island developing states and other vulnerable countries, success will depend not just on better technical models but on rethinking the global systems that govern disaster response — making sure that finance moves in ways that are fair, timely, and centred on the needs of the people most at risk.
Listen to Episode 3 on Spotify or Apple Podcasts.
Counter Crisis is produced by Tortoise Media (Observer).