CCRIF, a regional risk-sharing organization that provides parametric insurance to governments in the Caribbean and Central America, has launched the Livelihoods Protection Policy (LPP) in Jamaica as it 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 positioned LPP as a new option to help individuals recover faster after extreme rainfall or strong wind events.
LPP is a parametric microinsurance product designed for people who face high risks from climate disasters but who often do not have access to traditional insurance. This includes small farmers, fishermen, market vendors, food and craft sellers, seasonal tourist workers, day laborers, amateur performers and micro and agri-entrepreneurs.
LPP provides cash within 14 days when certain weather triggers are met, providing immediate support to help individuals stabilize their income, avoid financial setbacks and rebuild their future, CCRIF noted.
Following Hurricane Melissa, CCRIF provided US$91.9 million (J$14.8 billion) to the Government of Jamaica through its Tropical Cyclone and Excess Rainfall Policy. The funds were transferred within 14 days, underscoring CCRIF’s ability to provide rapid 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 build resilience at national and community levels. CCRIF explains that its sovereign policy, combined with the LPP, creates a broader approach to disaster risk financing that supports faster and more equitable responses to future climate-related shocks.
The LPP was originally developed through the Caribbean Climate Risk Adaptation and Insurance Project launched in 2011. The project is led by MCII in collaboration with CCRIF SPC and the ILO Impact Insurance Facility, and receives 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 concerns about insurance. CCRIF notes that this process lays the foundation for the 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 LPP, providing local and trusted access. CCRIF confirmed that the LPP will also be launched in Belize, Grenada and Saint Lucia in 2026. Guardian General expects to work with credit unions, cooperatives and other partners to support widespread distribution.
CCRIF’s microinsurance facility, launched in June with Celsius Pro and its subsidiary Global Parametrics, will enable Caribbean and Central American insurers to offer LPP and other inclusive insurance products. CCRIF said this approach would improve availability, encourage competition and help maintain affordability across the market.
Hurricane Melissa revealed how quickly income disappears when severe weather strikes. Farmers lost their crops, fishermen were unable to work, and traders’ daily income disappeared. Many people continue to face an uncertain recovery. The LPP provides a new financial buffer that enables affected individuals to replant, repair, restock or rebuild shortly after an incident.
Isaac Anthony, CEO of CCRIF, commented: “Hurricane Melissa reminds us that disasters not only destroy homes but disrupt lives and livelihoods. Livelihood protection policies aim to restore dignity and resilience, giving low-income and vulnerable people in the Caribbean the means to recover and recover more quickly.
“By integrating LPP into national disaster risk resilience frameworks, the region is positioning itself as a global leader in livelihood-focused climate risk financing. This launch is a critical step towards scalable, shock-resilient social protection that can be replicated across the Caribbean and beyond.”
CCRIF emphasized that the LPP is designed to provide rapid disbursements, support equitable access to protection, enhance financial stability for policyholders, and contribute to Jamaica’s disaster risk management, social protection and climate adaptation priorities.
