Grenadians to benefit from a new insurance cover: Launch of the Livelihood Protection Policy (LPP) in Grenada

St. George's, 22 January 2014

The Grenada-based primary insurer Trans-Nemwil Insurance Ltd., together with Grenada Co-Operative Bank Ltd. and Grenville Co-Operative Credit Union launched the Livelihood Protection Policy (LPP). Grenada will be the third country to implement the LPP, after Saint Lucia and Jamaica have launched the product in 2013.

Grenadians will benefit from a new insurance cover to protect their livelihoods in the face of extreme weather events. The LPP is a weather-index based insurance policy designed specifically to help low-income individuals recover from the damage caused by strong winds and/or heavy rainfall during hurricanes and tropical storms. Targeted at all individuals irrespective of income level, the LPP provides timely cash payouts soon after a weather event, enabling policy holders to start rebuilding their lives in the wake of a natural disaster. The product is available across the island through local distribution channels, including co-operative banks, credit unions, and farmer associations.

Managing Director of Trans-Nemwil Insurance (Grenada) Ltd., Mr. Ronald Hughes welcomed all attending guests by pointing out that the product offers low-income people the opportunity to provide cover for themselves in the event of weather-related damage, allowing for an easier, more honourable and less stressful path to recovery. He referred to Hurricane Ivan to illustrate how, following such a severe weather event, the financial resources of persons affected are stressed and how they either have to resort to their savings in the short term or having to clamour for assistance usually from the Government whose resources at the time are likely to be stressed as well. He concluded by saying that Trans-Nemwil is honoured to partner with the Grenada Cooperative Bank Limited and the Grenville Cooperative Credit Union who will perform the roll of distributors through their island wide network of branches for convenient public access. Initiates file downloadOpening remarks

Mr. Angus Smith (Executive Director, Grenada Authority for the Regulation of Financial Institutions, GARFIN) stressed that microinsurance products, such as the LPP, can help to mitigate shocks which would otherwise worsen the financial situation of low-income people, who are particularly vulnerable to the impacts that extreme weather events have to their livelihoods. In the light of financial inclusion and access to insurance being beneficial to improving the welfare and protection of society thus contributing to poverty reduction, he further highlighted that microinsruance regulation will be given specific consideration in the new insurance legislation now being prepared for the region as a key outcome of this project. You can find the full speech Initiates file downloadhere

Mr. Isaac Anthony (CEO, Caribbean Catastrophe Risk Insurance Facility, CCRIF) highlighted in his speech the pro-active nature of the LPP which constitutes a breakthrough in weather-related risk management and transfer options against extreme weather for individuals in the Caribbean. He emphasized the need for such instruments in the light of the heavy rainfall event that occurred on December 24th and 25th 2013 reminding the entire region that extreme rainfall can occur at any time and that it can also occur outside of the hurricane season, especially in the context of changing risk landscapes in the face of climate change. He closed by inviting attending stakeholders to help creating a Caribbean region with optimised disaster risk management and climate change adaptation practices that supports the long-term sustainable development of the entire region. Read the full speech Initiates file downloadhere

More updates about the launch event will be provided on this website as soon as more information is made available.

Any enquiries, please contact MCII Project Manager Ms. Sobiah Becker [becker@ehs.unu.edu]