The LPP is a parametric weather index-based microinsurance product that provides coverage for wind associated with tropical cyclones (tropical storms and hurricanes), as well as rainfall occurring throughout the year. It is designed to protect the livelihoods of vulnerable, low-income individuals by offering quick cash payouts, within 14 days of a policy triggering, following extreme weather events. Like CCRIF’s main parametric insurance products, payouts are triggered by predefined thresholds for wind speed and rainfall, eliminating the need for on-the-ground damage assessments.
The LPP targets small farmers, fishers, market and food vendors, day labourers, construction and seasonal tourism workers, and micro and small business owners. For example, a farmer whose policy is triggered could immediately access funds to drain fields, purchase supplies, replant crops, or repair irrigation systems, without waiting for external assistance.
Strategic Context and Evolution of the LPP
CCRIF’s expansion into microinsurance builds on the original LPP developed under the Climate Risk Adaptation and Insurance in the Caribbean (CRAIC) project with MCII, of which the Government of Jamaica is one of 5 participating countries. Since 2011, CCRIF and MCII have collaborated to study the microinsurance landscape, pilot the LPP in two Caribbean countries, and build capacity among insurers and regulators. Over time, the LPP has evolved to include additional target groups such as seasonal tourism workers and others in the value chain, such as taxi drivers and small-scale entertainers.
This current version of the LPP is powered by CCRIF’s state-of-the-art parametric models for tropical cyclones and excess rainfall, customized for the Caribbean and Central America. It represents a significant innovation in inclusive insurance and disaster risk financing, extending coverage to sectors and populations traditionally underserved by insurance markets.
CCRIF Microinsurance Facility and Digital Platform
In June 2025, during London Climate Action Week, CCRIF launched the CCRIF Microinsurance Facility in partnership with Celsius Pro and Global Parametrics. This included the introduction to the White Label Platform - a digital solution for efficient administration of microinsurance products, enabling multiple insurers to partner with CCRIF to scale offerings. This initiative is supported by the Natural Disaster Fund (NDF), a blended risk transfer vehicle funded by the UK Foreign, Commonwealth and Development Office and Germany’s KfW on behalf of BMZ. It reflects CCRIF’s commitment to inclusive resilience and to leaving no one behind.
CCRIF is the Caribbean and Central America Parametric Insurance Facility and Development Insurer and is proud to serve 35 members across the Caribbean and Central America, having made 80 payouts totaling US$391 million since 2007. With seven parametric products now in place, including for tropical cyclones, excess rainfall, fluvial flooding, earthquakes, and key economic sectors (water and electric utilities as well as for the fisheries sector), CCRIF is uniquely positioned to scale microinsurance across the region.
