Climate Risk Adaptation and Insurance in the Caribbean (CRAIC)
March 2011- December 2024 | Jamaica, Saint Lucia, Grenada, Belize, Trinidad & Tobago
Low-income people in the Caribbean; national governments in the Caribbean; policy makers in the international climate negotiations
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.

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. READ 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. READ 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 Publication: 20 Lessons Learned from the CRAIC Project

Given that CRAIC was one of the first projects of its kind in the region, it was designed as a project focused on learning and continuous improvement. The CRAIC project consortium aimed to capture the lessons learned during implementation, build on best practices, and—when required—take corrective action along the way. The lessons learned by the CRAIC implementers are applicable to other small island and coastal states that have an interest in developing and implementing similar microinsurance schemes to support vulnerable populations. This publication of lessons learned is intended to encourage a culture of learning and knowledge sharing on climate and disaster risk insurance, vulnerability, and closing the protection gap. Download the paper here.

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).



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.

Latest Project Updates

Closing the Climate Risk Protection Gap: Lessons Learned from the Caribbean Region
Guardian General to Guardian Group joins force with MCII to introduce microinsurance to vulnerable communities in Trinidad and Tobago

The CRAIC project is pleased to announce their cooperation with the Guardian Group on developing index-based insurance products for the meso and micro level in Trinidad and Tobago. MCII’s local coordinator Tara James met with the President of Guardian General Insurance Limited, Dean Romany, in Barbados to discuss with CRAIC project manager Dirk Kohler the Memorandum of Understanding and terms of cooperation. On May 22nd, 2019, the MoU was signed by President Dean Romany and the Executive Director of MCII, Sönke Kreft.

The CRAIC project team greatly looks forward to working closely together with the Guardian Group to develop new and innovative index-based microinsurance products for the Trinidadian market to protect the most vulnerable. These insurance products aim to pay out within 7 days of extreme weather events to help individuals, families, and cooperatives to recover quickly. Index-based insurance stabilizes the financial situation of vulnerable individuals after a disaster and allows them to avoid adopting coping strategies that could lead them deeper into poverty. The simplicity and flexibility of the these insurance products make it easier for people to get the level of coverage they need.

St. Lucian + Jamaican nationals needed as United Nations Volunteers to support the CRAIC project

St. Lucian and Jamaican nationals needed as United Nations Volunteers for CRAIC:

The CRAIC project team is searching for 4 Jamaican nationals and 2 St. Lucian nationals to work as United Nations (UN) volunteers to raise awareness of disaster risk management and risk transfer mechanisms from July to December 2018. The UN Volunteers will be provided with a stipend to assist with living costs.

Description of Tasks:

  • Attending a training session to learn about the project and its different components.
  • Organizing community events (in the evening or on weekends as needed) on your own or in collaboration with Climate Risk Adaptation and Insurance in the Caribbean (CRAIC) partner organizations (e.g. CCRIF SPC, OECS, etc.), churches, cooperatives and other community groups. These events will be focused on raising awareness of disaster risk management measures, the role of insurance in disaster risk management, and the Livelihood Protection Policy (LPP).
  • Presenting the CRAIC project material on DRM, index insurance and the LPP at the community events and answering questions from the participants. The Volunteer should also talk individually with the participants after the event to gather information on what DRM practices they currently employ.
  • Attending regular Skype and in person meetings with the project team to give updates on the current status of the project and their objectives. Occasionally translating project material into the local languages and work to develop project material (information guides, presentations) with the project team.
  • Supporting collection of qualitative/quantitative data for research in communities if required.
  • Other project support activities as needed.


  • Excellent presentation and communication skills with fluency in English; fluency in the local language will be an asset.
  • Experience working in the area of climate change adaptation, disaster risk management, environmental management, insurance, or related field is preferred. Training will also be provided. Field work would be an asset.
  • Willingness to adapt to the situation as needed and openness to new responsibilities and challenges.
  • Can work on own initiative and has the ability to negotiate with partners.
  • Excellent team player, empathy and flexibility, enjoys working with people from different cultures. Willingness to work with various vulnerable communities.
  • Access to a car that can be used for attending community events and meetings with partners is preferred. Travel across the country/ countryside is required.
  • Access to a laptop or tablet that can be used at community events to present a video to attendees.
  • Openness to relocate on the island would be an advantage.

Application Process:

To apply, please first go to the UN Volunteers Webpage and sign up as a candidate: HTTPS://VMAM.UNV.ORG/

Once you have created a profile, please click on the links below to apply to the specific position:

Jamaicans HERE

St. Lucians HERE

For questions regarding the position, please contact: PHILLIPS(AT)EHS.UNU.EDU

Please submit your application by June 20th, 2018. Applications received after this deadline will not be considered!

Read the new project brochure
Phase II Project Kick-Off in Barbados

We are pleased to announce the project kick-off and annual planning workshop for the second phase of the Climate Risk Adaptation and Insurance in the Caribbean will take place 10-13 July, 2017 in Barbados.

The new project phase affords an ideal opportunity for key project stakeholders to review the lessons learnt from the first phase; identify challenges and opportunities for future work; and, develop a work plan for the next three years of engagement in the eastern Caribbean.

The second phase of the BMUB-funded Climate Risk Adaptation and Insurance in the Caribbean project envisages a scaling up of project activities: the scope of the project is being expanded to 5 countries viz Jamaica, Saint Lucia, Grenada, Belize and Trinidad & Tobago.

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

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 rainfallduring 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. OPENING 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 HERE

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 HERE

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 []

Saint Lucians benefit from LPP payout

Local insurer EC GLobal recently paid out to subscribers of the Livelihood Protection Policy (LPP) in Saint Lucia, after a low-pressure trough system moved over the island on 24-26 December 2013, triggering a payout based on heavy rainfall in both the North and South areas of Saint Lucia.

When policy holders received their payouts in early January 2014, they responded by saying they feel it is important to have some form of insurance protection against weather events and that they are very happy the LPP could live up to the promised payouts shortly after the event hit the island.

You can read EC Global’s press release HERE.

Deutsche Welle features clip in Saint Lucia: Insuring a Caribbean Island Against Storms

Tropical storms are causing increasing damage to the Caribbean each year – and the costs are rising. Climate change has led to more frequent and severe hurricanes, and it is often the region’s poorest who suffer the most. Many impoverished families can lose everything they own in a single night. Micro-insurance could help protect families against such losses and play a role not just in helping people adapt to a changing climate but also in combating poverty.

A team from Deutsche Welle accompanied the project team in Saint Lucia. Read the story and watch the clip HERE.

Voices From the Field: Policy Holder Elisia Marquis (Saint Lucia)

Has your experience of storms and hurricane changed in your lifetime?

The world has changed. When I was young we never heard much about these types of storms, now they are becoming an everyday thing. What is most surprising is that it is happening even when they say it isn’t supposed to be happening.

How has this affected your income?

I used to make enough from my plantations, but lately I am earning less and less. Storms and heavy rains are impacting on my crops, causing them to become waterlogged and rot.

What have been the impacts for other farmers?

They are struggling a lot. Hurricane Tomas had a huge effect on banana farmers, with many losing their crops. Some have tried growing alternative crops, with others needing banks loans in order to replant.

How are you protecting yourself from future impacts?

When I found out about the Livelihood Protection Policy, I thought it sounded like a great idea and a good way to provide some extra assistance in times of need. Even having insurance I don’t want a hurricane as they are devastating for our country. I also know there is still lots of preparation I need to do to protect my crops, but I am happy that I won’t lose everything when the next big storm hits.

Jamaica Launches the Livelihood Protection Policy