The “Livelihood Protection Policy” (LPP) was launched in Grenada on January 22, 2014. This new insurance product is designed to protect low-income people against extreme weather risks. Grenada becomes the third country in the region – following Saint Lucia and Jamaica – to offer this new product, which was developed by the “Climate Risk Adaptation and Insurance in the Caribbean” project.
The LPP aims to protect low-income earners, including small-holder farmers as well as day labourers in other sectors, with the intention to cover losses to people’s livelihoods caused by heavy rainfall and high winds. It enables affected people to recover more quickly after a damaging weather event. LPP policies have been purchased in both Saint Lucia and Jamaica and after the extreme rains that occurred in the Eastern Caribbean in December last year, policies purchased by farmers in Saint Lucia were triggered. Those farmers have already received their payouts, allowing them to start recovery activities.
The LPP is being offered in Grenada through Trans-Nemwil Insurance Limited in collaboration with Grenada Co-Operative Bank Limited and Granville Co-Operative Credit Union.
The Climate Risk Adaptation and Insurance in the Caribbean project is implemented by the Munich Climate Insurance Initiative (MCII) in partnership with the Caribbean Catastrophe Risk Insurance Facility (CCRIF), insurance services provider MicroEnsure and global reinsurer Munich Re. The project is part of the International Climate Initiative (ICI) and supported by the German Federal Ministry for the Environment, Nature Conservation and Nuclear Safety (BMU).