Climate Risk Adaptation and Insurance in the Caribbean

Project Overview

Over the last 30 years in the Caribbean, flood and tropical storm damage affected 1.5 million persons directly and caused over USD 5 billion in damage

Climate change is a reality that can no longer be denied.  As extreme weather events such as droughts, floods, hurricanes and storms increase in frequency and intensity, they place significant stress on societies and natural systems. These events lead to loss of income and productive potential, forcing affected low-income individuals to resort to a variety of desperate coping strategies that include: reducing food consumption, taking children out of school, borrowing money and selling assets. These strategies diminish their ability to cope with current and future climate change impacts. As a result, there is a growing need to explore meaningful options for managing and transferring risks associated with climate change. One feasible measure to support adaptation to climate change is climate risk insurance.

The Climate Risk Adaptation and Insurance in the Caribbean project seeks to address climate change, adaptation and vulnerability by promoting weather-index based insurance as a risk management instrument in the Caribbean. The project has developed two parametric weather- index based risk insurance products aimed at low-income individuals and lending institutions exposed to climate stressors. Opens internal link in current windowRead More

Developed Products

The Livelihood Protection Policy
Targeted at individuals, this product helps protect the livelihoods of vulnerable low-income individuals by providing swift unbureaucratic cash payouts following extreme weather events (i.e. high wind speed and heavy rainfall). This crucial support will reduce poverty and vulnerability by enabling these groups to recover quickly following a disaster. Opens internal link in current windowRead More

The Loan Portfolio Cover
Targeted at lending institutions, the Loan Portfolio Cover (LPC) employs the Livelihood Protection Policy (LPP) as part of a loan, creating a space of certainty for institutions with credit portfolios exposed to natural disaster risk. As loans are insured against extreme weather events, investment can reach areas previously considered too risky for traditional lending. In the short run, this creates a win-win situation for the lender and the borrower, while also contributing to economic development in the region in the long run.

New Video: Disaster Preparedness & the Role of the Livelihood Protection Policy

This video was created to educate communities in the Caribbean about disaster risk management measures that can be taken to prepare for natural disasters. Along with mitigation activities, the video shows the role insurance can play as part of a comprehensive disaster risk management strategy and how it can help vulnerable groups become more resilient to extreme weather events like hurricanes and excess rainfall. The video, which was created for use throughout the Caribbean, is currently available in English and has first been translated for the Jamaican market into the local language – Jamaican Patois. Other translations are intended to follow. The CRAIC project’s UN Volunteers use these videos when they host community meetings as a way to start the conversation on disaster risk reduction (DRR) and to introduce the Livelihood Protection Policy (LPP).



Latest Project Updates

  • Closing the Climate Risk Protection Gap: Lessons Learned from the Caribbean Region Initiates file downloadRead More

  • Guardian General to Guardian Group joins force with MCII to introduce microinsurance to vulnerable communities in Trinidad and Tobago Opens internal link in current windowRead More

  • St. Lucian + Jamaican nationals needed as United Nations Volunteers to support the CRAIC project Opens internal link in current windowRead More

  • Read the new project brochure Initiates file downloadhere

  • Phase II Project Kick-Off in Barbados Opens internal link in current windowMore

  • Grenada launches Livelihood Protection Policy (LPP) Opens internal link in current windowMore

  • Saint Lucians benefit from LPP payout Opens internal link in current windowMore

  • Deutsche Welle features clip in Saint Lucia: Insuring a Caribbean Island Against Storms Opens internal link in current windowMore

  • Voices from Saint Lucia - Policy Holder Elisia Marquis Opens internal link in current windowMore

  • Jamaica Launches the Livelihood Protection Policy: Opens internal link in current windowIn Pictures

Our Project Partners

The Climate Risk Adaptation and Insurance in the Caribbean project is led by the Munich Climate Insurance Initiative (MCII) - hosted at the United Nations University Institute for Environment and Human Security (UNU-EHS). The project is implemented by MCII together with its partners, CCRIF SPC (formerly the Caribbean Catastrophe Risk Insurance Facility), DHI, ILO's Impact Insurance Facility and Munich Re. Funding for the project has been provided by the German Federal Ministry for the Environment, Nature Conservation and Nuclear Safety (BMU) under the International Climate Initiative.


Contact us by e-mail: mcii(at)