The Caribbean Catastrophe Risk Insurance Facility (CCRIF) Wednesday said it will launch a new initiative in Jamaica this week in the wake of the disaster caused by Hurricane Melissa, which left thousands of low-income Jamaicans struggling to rebuild their lives and livelihoods.
It said that 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.
CCRIF said that Hurricane Melissa underscored the urgent need for accessible financial protection and that 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.
‘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,’ said CCRIF chief executive officer, Isaac Anthony,
‘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,’ he added.
The CCRIF, which has so far made made two payouts to Jamaica totaling US$91.9 million following the passage of the category 5 storm on October 28, said 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.
‘By providing fast cash payouts within 14 days of extreme rainfall or wind events, the LPP is designed to empower these groups and households to recover quickly, avoid falling into poverty, and protecting their futures.’
The CCRIF said that the earlier payments to the Jamaica government was made under its tropical cyclone and excess rainfall policies, within 14 days of the hurricane, and that 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.’
The CCRIF said that the LPP was first piloted under the Climate Risk Adaptation and Insurance in the Caribbean (CRAIC) project, implemented since 2011 in collaboration with the ILO’s Impact Insurance Facility, with financial support from the International Climate Initiative (IKI) of the German government.
‘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.’
The CCRIF said that in Jamaica, the LPP will initially be sold through Guardian General Insurance Jamaica Limited, ensuring trusted local distribution and immediate accessibility.
‘Beyond Jamaica, the LPP will also be available in 2026 in Belize, Grenada, and St. 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.’
CCRIF said that 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.