The United Nations World Food Programme (WFP), the UN agency that provides food assistance and supports communities facing hunger and food insecurity, has joined CCRIF SPC as its first UN agency and multilateral organisation to purchase parametric insurance.
The agreement is designed to improve access to emergency funding for vulnerable populations in Haiti and the Dominican Republic following severe tropical weather events.
Announced in Grand Cayman, Cayman Islands, the agreement covers two tropical cyclone insurance policies purchased by WFP from CCRIF, with a combined coverage limit of USD $11.6 million. The policies establish a potential source of funding for humanitarian operations following major tropical storms and hurricanes, subject to the conditions set out in the insurance contracts.
CCRIF SPC, a regional catastrophe risk insurance facility serving governments and other policyholders, said WFP’s participation represents an expansion of how parametric insurance can be used to support disaster preparedness and emergency response across the Caribbean.
“WFP joining CCRIF is a milestone for CCRIF and for the Caribbean region. It shows that parametric insurance is not only a tool for governments, but for every institution that stands on the front line when disaster strikes. We have always sought to innovate, so that more of the region’s people are protected, and this membership does exactly that,” commented Isaac Anthony, CEO of CCRIF SPC.
According to CCRIF, the policies are intended to help WFP secure funds more quickly when a qualifying weather event occurs. Rather than depending solely on conventional funding appeals and resource mobilisation after a disaster, WFP could use the insurance proceeds to support the early delivery of food, cash assistance and other essential relief to affected households.
The arrangement is particularly relevant to the Dominican Republic, which is not currently a CCRIF member. The policies give WFP a separate means of accessing potential disaster financing for its operations in the country, without requiring the government to hold membership in the facility.
“Every hurricane season poses a risk to thousands of families in the Dominican Republic. Having this financial protection in place allows us to ensure that assistance reaches those who need it most without lengthy resource mobilisation processes, if a WFP policy triggers. This means food, support, and hope for vulnerable communities in the critical days following an extreme weather event, when every hour counts,” added Alex Robayo, WFP Representative and Country Director in the Dominican Republic.
In Haiti, where CCRIF has maintained a presence since 2007, the new policies add another potential source of disaster-related funding alongside the country’s existing sovereign insurance arrangements. CCRIF reported that Haiti has received more than USD $80 million through its sovereign policies covering tropical cyclones, excess rainfall and earthquakes, as well as associated endorsements, including the Local Event Trigger. The most recent payout cited by CCRIF followed Hurricane Melissa in 2025.
Under the new arrangement, WFP could also receive a payout following a qualifying hurricane or major tropical storm in Haiti. CCRIF said the coverage is intended to help the organisation respond to urgent humanitarian needs while supporting households facing the effects of extreme weather.
“With more than half of all Haitians already experiencing acute or higher levels of food insecurity, shocks associated with extreme weather can push already-vulnerable families further into crisis. This insurance provides a predictable and rapidly activated financial tool, which may be triggered by a hurricane or major tropical storm, allowing WFP to help affected populations meet their most urgent needs while protecting their ability to recover,” said Lauren Landis, Country Director for WFP in Haiti.
CCRIF said the addition of WFP brings its membership to 40. The organisation also reported a rise in its total coverage for the 2026/27 policy year, which has reached USD $1.8 billion, up from USD $1.44 billion in the previous year. The 25% increase represents the largest annual expansion in coverage since CCRIF was established, according to the organisation.
Since beginning operations in 2007, CCRIF has made 83 payouts worth more than USD $500 million, with payments issued within 14 days of each triggering event, the facility reported. More than five million people across the Caribbean and Central America have benefited from these payments.
CCRIF’s parametric insurance products use predefined event parameters and modelling to estimate the impact of a disaster on an insured area. Unlike conventional insurance arrangements that may require detailed assessments of actual losses before payments can be made, this approach allows payouts to be processed according to the policy’s specified criteria. Payments are not guaranteed following every disaster and depend on whether the relevant policy triggers are met.
CCRIF said this model could support WFP’s work by helping the agency access funding within a relatively short period after a qualifying event. The availability of funds can be important when humanitarian teams need to organise food distribution, cash transfers and other forms of relief in communities affected by hurricanes and tropical storms.
The agreement builds on existing cooperation between WFP and CCRIF. Before purchasing insurance directly, WFP worked with the facility through the WFP-CCRIF Social Protection Top-up Model. This initiative helped participating governments in the Caribbean and Central America expand assistance to vulnerable households through national social protection programmes following disasters.
By becoming a direct policyholder, WFP now has the potential to finance emergency assistance through its own insurance coverage, rather than relying exclusively on arrangements channelled through national systems. CCRIF said this could be useful when government resources and social protection programmes are under pressure, or when a country has not yet joined the facility.
WFP’s participation broadens the potential role of parametric insurance in humanitarian financing. According to CCRIF, the arrangement demonstrates how insurance-based funding can complement government-led disaster response and existing humanitarian financing mechanisms, providing another possible source of resources for emergency operations in vulnerable communities.
