Climate Risk Adaptation and Insurance in the Caribbean (CRAIC)

Climate risk insurance has gained importance as part of climate risk management for securing livelihoods, especially in countries that are increasingly exposed to extreme weather events. In selected countries in the Caribbean, the project therefore will deepen the dissemination of these insurances and expand the availability of the Livelihood Protection Policy to other countries. It will also help to increase the number of insurance providers. The target groups are primarily population groups that are strongly affected by climate change. At the same time, climate risk insurance will be integrated more strongly into national disaster management policies. The implementing partner CCRIF is an insurance pool set up by CARICOM states to insure themselves against natural disasters. In addition, the project will also be involved in regional and international climate policy processes and negotiation formats, such as COP conferences.

Project data

Countries: Belize, Grenada, Jamaica, Saint Lucia, Trinidad and Tobago
IKI funding: 4,427,952.00 €
Duration: 11/2016 till 06/2026
Status: open
Implementing organisation: Munich Climate Insurance Initiative
Political Partner: Diverse climate change relevant institutions in the respective partner countries/Diverse klimarelevante Institutionen in den entsprechenden Partnerländern
Implementing Partner: Caribbean Catastrophe Risk Insurance Facility (CCRIF) - Grand Cayman

DHI Water & Environment (S) Pte. Ltd., MIKE, Powered by DHI - Denmark

Münchener Rückversicherungs-Gesellschaft (Munich Re) - Germany

United Nations University Institute for Environment and Human Security (UNU-EHS)
Online: http://www.climate-insurance.org/home/

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State of implementation/results

The project concluded with the development of the Livelihood Protection Policy (LPP) product, which covers protection from high winds and heavy rainfall. The insurer is seeking regulatory approval from insurance regulators to make the LPP available to low-income and vulnerable communities in five pilot countries in the Caribbean.
Together with the University of the West Indies (UWI), the project team initiated research in all five project countries on the risk perceptions of individuals and entrepreneurs in the agricultural, fisheries, and tourism sectors, their exposure to climate hazards, how their livelihoods are affected by climate risks, their need for financial and non-financial services after climate disasters, as well as their awareness of disaster risk financing options, including climate risk insurance solutions.
To contribute to understanding the need for climate and disaster insurance to protect vulnerable communities in the Caribbean, the project team shared preliminary findings from socioeconomic research with civil society organizations at a seminar organized by the Caribbean Policy Development Centre (CPDC) on August 20-21, 2024, in Barbados.
The project team shared their experience at the CARICOM Pavilion side event during the UNFCCC COP 28 in December 2023 in Dubai. The discussion centered on climate risk insurance, social protection, and loss and damage, focusing on protecting climate-vulnerable communities from increasingly frequent and severe climate-induced disasters in the Caribbean.
In July 2023, the CRAIC Project team contributed to a summer course in Disaster Risk Financing organized by the University of the West Indies and CCRIF SPC from July to August with a lecture on “Microinsurance as a Disaster Risk Finance instrument for vulnerable groups” to raise awareness on climate disaster risk finance and insurance for students in the Caribbean.
On February 2nd, 2022, CCRIF SPC signed a Memorandum of Understanding with Guardian General Insurance Limited to offer individuals and organizations such as cooperatives and non-governmental organizations (NGOs) and their members the ability to protect themselves against economic losses that result from extreme weather associated with wind and rain. Guardian General Insurance Limited will provide access to the Livelihood Protection Policy (LPP) – a parametric micro-insurance product designed to help protect the livelihoods of low-income and vulnerable groups by providing quick cash pay-outs following extreme weather events (specifically, high winds and heavy rainfall).
The CRAIC Project made significant progress in scaling up access to climate risk insurance for vulnerable communities in the Caribbean. A key milestone was the institutionalisation of the Livelihood Protection Policy (LPP) within CCRIF SPC, ensuring long-term sustainability beyond the project’s lifetime.
Guardian General Insurance Limited (GGIL) remains the lead insurer for the Livelihood Protection Policy (LPP). While the initial agreement (MoU) with CCRIF SPC has expired, a new agreement is currently being finalised to guide future collaboration on distributing microinsurance distribution across the Caribbean.
The launch of the updated LPP is planned for the end of 2025. The project is working closely with its partners, including CCRIF SPC, GGIL, and country regulators, to ensure timely approval, operational readiness, and alignment with public policy goals on disaster risk reduction and financial inclusion.

Latest Update:
12/2025