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CCRIF SPC, the Caribbean and Central America Parametric Insurance Facility and Development Insurer, has unveiled a new parametric insurance product, the Livelihood Protection Policy (LPP), in Jamaica as the country continues to deal with the aftermath of Hurricane Melissa.
As per CCRIF, the Livelihood Protection Policy (LPP) has been created for individuals who face high exposure to climate shocks, but are often unable to access traditional insurance
This includes: small farmers, fisherfolk, market, food and craft vendors, seasonal tourism workers, day labourers, amateur entertainers and micro- and agri-entrepreneurs.
The LPP, which will reportedly provide fast cash payouts within 14 days of extreme rainfall or wind events, will provide immediate support for these individuals, and help them to recover more quickly after extreme rainfall or high wind events.
As mentioned, the release of the LPP comes in the wake of Hurricane Melissa, which left thousands of low-income Jamaicans facing significant challenges in restarting their livelihoods
Shortly after the event, CCRIF made record-breaking payouts of US$91.9 million (J$14.8 billion) to the Government of Jamaica under its tropical cyclone and excess rainfall policies, within 14 days of the hurricane.
On that same day, the World Bank also confirmed that the Government of Jamaica would receive a full 100% payout of its $150 million IBRD CAR Jamaica 2024 parametric catastrophe bond.
“The launch of the LPP now extends this protection directly to households and low-income groups, ensuring that resilience is built not only at the national level but also at the community level. Together, CCRIF’s government/sovereign policies and the LPP form a comprehensive disaster risk financing framework, that would enable Jamaica to respond faster and more equitably to future climate shocks,” CCRIF explained.
CCRIF notes that the LPP is intended to deliver fast payouts, as well as 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.
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 collaboration with CCRIF SPC and the ILO’s Impact Insurance Facility, while financial support was received from the International Climate Initiative of the German Federal Government through the Federal Ministry for the Environment, Climate Action, Nature Conservation and Nuclear Safety.
Moreover, the LPP was piloted across five Caribbean countries, including Jamaica, to ensure that it reflected the needs of low income groups and responded to early doubts about insurance.
CCRIF explained that this collaborative effort helped set the stage for wider adoption of microinsurance within the Caribbean region.
In Jamaica, the LPP will initially be distributed through Guardian General Insurance Jamaica Limited, which provides a local and trusted avenue for accessibility.
CCRIF also revealed that the LPP will be made available in Belize, Grenada, and Saint Lucia in 2026, extending its benefits to vulnerable communities across the wider Caribbean.
Guardian General is expected to work with a range of distributors and aggregators, including credit unions and cooperatives, to support broad distribution of the product.
Following the launch of CCRIF’s new Microinsurance Facility in partnership with Celsius Pro and its subsidiary, Global Parametrics, in June of this year, multiple insurers across the Caribbean and Central America will be able to offer the LPP and other inclusive insurance products.
This will ultimately help increase availability, strengthen competition, and maintain affordability and scalability of microinsurance solutions.
CCRIF noted that Hurricane Melissa clearly demonstrated the need for accessible financial protection.
“Farmers lost crops, fisherfolk were unable to go to sea, and market vendors saw their daily incomes vanish. For many, recovery has been slow and remains uncertain. The LPP offers a new safety net, ensuring that when the next storm comes, affected individuals will have immediate resources to replant, repair, restock, and rebuild,” the firm explained.
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 unveils parametric policy to safeguard vulnerable groups after severe weather events was published by: www.Artemis.bm
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