CCRIF, a regional risk pooling organisation that provides parametric insurance to Caribbean and Central American governments, has introduced the Livelihood Protection Policy (LPP) in Jamaica as the country continues to deal with the aftermath of Hurricane Melissa.
The storm left thousands of low income Jamaicans facing significant challenges in restarting their livelihoods, and CCRIF is positioning the LPP as a new option to help individuals recover more quickly after extreme rainfall or high wind events.
The LPP is a parametric microinsurance product created for people who face high exposure to climate hazards but are often unable to access traditional insurance. This includes small farmers, fisherfolk, market vendors, food and craft sellers, seasonal tourism workers, day labourers, amateur performers and micro and agri entrepreneurs.
CCRIF notes that the LPP provides cash within 14 days when specified weather triggers are met, offering immediate support that can help individuals stabilise their income, avoid financial setbacks and rebuild their future.
After Hurricane Melissa, CCRIF delivered US$91.9 million (J$14.8 billion) to the Government of Jamaica through its tropical cyclone and excess rainfall policies. The funds were transferred within 14 days, highlighting CCRIF’s capacity to deliver swift financial support to its member governments when severe weather strikes.
With the launch of the LPP, CCRIF is extending similar protection directly to households, aiming to reinforce resilience at both national and community levels. CCRIF explains that its sovereign policies combined with the LPP create a broader approach to disaster risk financing that supports faster and fairer responses to future climate related shocks.
The LPP was first developed through the Climate Risk Adaptation and Insurance in the Caribbean Project, which began in 2011. The project was led by MCII in partnership with CCRIF SPC and the ILO’s Impact Insurance Facility, and received financial support from the International Climate Initiative of the German Federal Government through the Federal Ministry for the Environment, Climate Action, Nature Conservation and Nuclear Safety.
The LPP was tested in five Caribbean countries to ensure it reflected the needs of low income groups and responded to early doubts about insurance. CCRIF notes that this process set the stage for wider adoption of microinsurance as part of regional resilience and social protection strategies.
In Jamaica, Guardian General Insurance Jamaica Limited will serve as the first distributor of the LPP, which provides a local and trusted avenue for access. CCRIF confirms that the LPP will also be made available in Belize, Grenada and Saint Lucia in 2026. Guardian General is expected to work with credit unions, cooperatives and other partners to support broad distribution.
CCRIF’s Microinsurance Facility, launched in June with Celsius Pro and its subsidiary Global Parametrics, will allow insurers across the Caribbean and Central America to offer the LPP and other inclusive insurance products. CCRIF states that this approach will increase availability, encourage competition and help maintain affordability across markets.
Hurricane Melissa revealed how quickly incomes can disappear when severe weather strikes. Farmers lost crops, fisherfolk could not work and vendors saw daily earnings disappear. Many continue to face an uncertain recovery. The LPP offers a new financial buffer that enables affected individuals to replant, repair, restock or rebuild shortly after an event.
CCRIF CEO Isaac Anthony commented: “Hurricane Melissa reminded us that disasters do not only damage homes – they disrupt lives and livelihoods. The Livelihood Protection Policy is about restoring dignity and resilience, giving low‑income and vulnerable groups across the Caribbean the means to recover and bounce back faster.
“By embedding the LPP within national disaster risk resilience frameworks, the region is positioning itself as a global leader in livelihood‑focused climate risk financing. This launch represents a critical step toward scalable, shock‑responsive social protection that can be replicated across the Caribbean and beyond.”
CCRIF highlights that the LPP is intended to deliver fast payouts, support equitable access to protection, strengthen financial stability for policyholders and contribute to Jamaica’s priorities for disaster risk management, social protection and climate adaptation.
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