GRAND CAYMAN:--- The Government of Panama will receive US$17.4 million from CCRIF SPC following the magnitude 7.7 earthquake that struck the country on October 9, damaging schools, homes, hospitals, and public infrastructure.
CCRIF announced on October 15 that the payment was triggered under Panama’s earthquake insurance policy, purchased through the Fondo de Ahorro de Panamá. The payout will be made within 14 days of the disaster to support emergency response efforts.
According to the announcement, the earthquake occurred at 12:56 p.m. local time, with its epicenter near Pitaloza Arriba on the Azuero Peninsula.
CCRIF’s SPHERA earthquake model estimated ground acceleration of up to 0.5 g in Panama. The modeled government losses exceeded the threshold required to activate the country’s insurance coverage.
A preliminary report issued by Panama’s National Civil Protection System, SINAPROC, on October 12 identified damage to homes, schools, hospitals, public buildings and roads across several provinces.
The assessment recorded 656 affected schools, while authorities opened 14 shelters to accommodate 598 people. Damage assessments and humanitarian assistance continued. No deaths or missing persons had been reported when the assessment was finalized.
CCRIF Chief Executive Officer Isaac Anthony expressed concern for affected families and communities, emphasizing that the payment would help the government meet immediate needs.
“This payout will give the Government immediate liquidity to support its response at the time it is most needed,” Anthony said.
He also highlighted Panama’s use of its national savings fund to purchase earthquake insurance, describing it as an example of combining insurance coverage with national financial reserves to prepare for disasters.
Panama has been a CCRIF member since 2018. Before this earthquake, the country received three payouts linked to excess rainfall associated with Hurricane Eta in 2020 and exceptional rainfall events in 2024.
According to CCRIF, those earlier payments totaled about US$29 million.
The latest payment will bring CCRIF’s overall record to 83 payouts totaling more than US$500 million since its establishment in 2007. The facility said it has made every payout within 14 days of the triggering event.
CCRIF’s parametric insurance policies calculate payments using predefined hazard conditions and modelled losses, allowing funds to be released without waiting for detailed damage assessments on the ground.
The financing gives governments and public utilities access to money during the critical period following a disaster, helping them maintain essential services, support affected communities and manage emergency expenses.