CCRIF launches parametric Livelihood Protection Policy

In the wake of Hurricane Melissa, which left thousands of Jamaicans struggling to rebuild their lives, the Caribbean Catastrophe Risk Financing Facility (CCRIF) has launched a new parametric insurance product designed to help low-income groups in the aftermath of such a disaster.

The Livelihood Protection Policy (LPP) is a parametric microinsurance product designed specifically for groups most exposed to climate shocks yet traditionally excluded from formal insurance markets. Some of these groups include small farmers, fisherfolk, market, food and craft vendors, seasonal tourism workers, day labourers, amateur entertainers and micro- and agri-entrepreneurs among others. The policy will provide fast cash payouts within 14 days of extreme rainfall or wind events.

Following Hurricane Melissa, CCRIF made record-breaking payouts of $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. The launch of the LPP now extends this protection directly to households and low-income groups.

The LPP was first piloted under the Climate Risk Adaptation and Insurance in the Caribbean (CRAIC) Project, implemented since 2011 by the MCII in collaboration with CCRIF SPC and the ILO’s Impact Insurance Facility, with financial support from the International Climate Initiative (IKI) of the Federal Government of Germany. Within the Federal Government, the IKI is anchored in the Federal Ministry for the Environment, Climate Action, Nature Conservation and Nuclear Safety (BMUKN).

The CRAIC Project piloted, tested, and refined the LPP across five Caribbean countries, ensuring that the product reflects the realities of low income and vulnerable groups and lessons learned from addressing early skepticism around insurance. This collaborative effort has laid the foundation for scaling-up microinsurance in the Caribbean region, embedding the LPP within broader resilience and social protection strategies.

In Jamaica, the LPP will initially be sold through Guardian General Insurance Jamaica, ensuring trusted local distribution and immediate accessibility. Beyond Jamaica, the LPP will also be available in 2026 in Belize, Grenada, and Saint Lucia, extending its benefits to vulnerable communities across the wider Caribbean. Guardian General will work with a range of distributors and aggregators, including credit unions and cooperatives, to make the LPP easily accessible.

With 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 distribute the LPP and other inclusive insurance products. This will expand reach, strengthen competition, and ensure affordability and scalability of microinsurance solutions.

CCRIF CEO Isaac Anthony said: “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.”

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