Cayman Islands:--- In the wake of Hurricane Melissa, which left thousands of low-income Jamaicans struggling to rebuild their lives and livelihoods, a groundbreaking parametric insurance product, the Livelihood Protection Policy (LPP), is being launched in Jamaica this week.
The LPP is a parametric microinsurance product explicitly designed 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. 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 protect their futures.
Following Hurricane Melissa, 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. 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 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 Limited, 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.
Hurricane Melissa underscored the urgent 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. According to CCRIF CEO, Isaac Anthony, "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."
Strategic Benefits of the LPP
• Fast payouts: No lengthy claims process - cash within days.
• Equity and inclusion: Designed for those most exposed to climate-related events and least protected.
• Financial empowerment: Improves creditworthiness and access to financial services.
• Policy alignment: Supports Jamaica’s disaster risk management, social protection, and climate adaptation strategies.
Resilience starts with protecting what matters most - your livelihood and your family.
All LPP target groups, including farmers, fishers, market and food vendors, taxi drivers, construction workers, seasonal tourism workers, amateur musicians, and microenterprises are encouraged to ask their local credit unions, cooperatives, and Guardian General Insurance Limited about enrolling in the LPP today.