GUARDIAN General Insurance Jamaica (GGIJ) has launched Climate Guard — a new parametric, micro-insurance product developed in partnership with CCRIF — to deliver rapid, no-questions-asked cash relief to vulnerable Jamaicans impacted by extreme rainfall and high-wind events.

Designed to bolster climate resilience among low-income households and micro-business operators, the policy targets individuals who are frequently hit hardest by hurricanes yet are often excluded from the traditional insurance market. Beneficiaries include farmers, fisherfolk, market vendors, taxi and bus operators, construction and seasonal workers, creatives, labourers, micro-entrepreneurs, community groups and NGOs.

The coverage offered is intended to help these groups recover quickly; avoiding falling into poverty while protecting their livelihoods. Policies start at US$100, with a single premium rate of 11.5 per cent for both wind and rain perils.

“The Climate Guard policy is geared towards underserved populations who are usually unable to secure insurance. Done on a parametric basis, it allows policyholders to insure themselves against an event as opposed to insuring an item. Once that event occurs, they will receive a payout whether or not they suffered damage,” Karen Bhoorasingh, president of GGIJ, told the Jamaica Observer following a soft roll-out of the product last week.

Powered by the Livelihood Protection Policy (LPP) model from CCRIF’s Climate Risk Adaptation and Insurance in the Caribbean (CRAIC) project, Climate Guard delivers automatic payouts within 14 days once an independently verified weather trigger is met. This eliminates the need for claims assessments, proof of damage, or on-site inspections.

Payouts currently range from a partial percentage of the limit to the full limit, depending on the severity of the weather event. Once triggered, payments are deposited directly into the insured’s bank account. Plans are, however, underway to add more payment channels, such as money service outlets.

Policies are available for purchase from June 1 to December 31 each year; and for maximum benefit, customers are encouraged to begin coverage on June 1 in order to ensure protection for the full hurricane season. All policies, however, expire on May 31, and premiums are not pro-rated.

CCRIF, in partnering with Guardian General as the local underwriter, has indicated that following a successful roll-out in Jamaica, the product is expected to expand to other Caribbean territories. A 2026 launch is already planned for Belize, Grenada and St Lucia. GGIJ in the meantime will work with a range of distributors — including credit unions and cooperatives — to broaden access to the product.

The launch of Climate Guard comes on the heels of CCRIF’s recent US$91.9-million payout to the Government of Jamaica under its tropical cyclone and excess rainfall policies, following the passage of Hurricane Melissa which made landfall on October 28. Together, the regional insurance facility’s sovereign policies and the LPP form a comprehensive disaster risk financing framework that enables both Government and households to respond more quickly and equitably to climate shocks.

Highlighting the value of parametric insurance, Bhoorasingh said the Climate Guard policy aims to extend the same rapid-relief mechanisms available at the national level directly to individuals and small operators. She noted that the product, which took more than two years to develop, also aligns with GGIJ’s environmental, social, and governance (ESG) commitments.

“This policy is really part of our ESG framework and giving back to the community, and as such we do not expect to earn big margins from it. Given what has happened with Hurricane Melissa recently we think its roll-out to market comes at the right time,” she further said to the Business Observer.

With more intense storms predicted, Climate Guard, she likewise said, provides a vital buffer in ensuring that vulnerable Jamaicans can have immediate resources to replant, restock, repair and rebuild when a disaster strikes. To this end, she encouraged more small operators to enroll in the scheme to create their own safety nets.

“Hurricane Melissa showed how devastating it can be to have no protection. Just as the country benefited from the catastrophe bond, individuals also need to have basic coverage as a safeguard,” she said.

“Hurricane Melissa reminded us that disasters do not only damage homes — they disrupt lives and livelihoods. The LPP is about restoring dignity and resilience, giving low-income and vulnerable groups across the Caribbean the means to recover and bounce back faster. By embedding the LPP within national disaster risk resilience frameworks the region is positioning itself as a global leader in livelihood-focused climate risk financing. This launch represents a critical step toward scalable, shock-responsive social protection that can be replicated across the Caribbean and beyond,” CCRIF CEO Isaac Anthony added.

Looking to intensify promotional efforts around the product in the coming year, Bhoorasingh said GGIJ hopes to witness a strong take-up.

“We’re excited about the product’s launch locally and will be moving to offer it to more customers ahead of next year’s hurricane season. We are now building awareness but expect to do some heavy sales as we move closer to June 2026,” she concluded.

BHOORASINGH…this policy is really part of our ESG framework and giving back to the community, and as such we do not expect to earn big margins from it. Given what has happened with Hurricane Melissa recently we think its roll-out to market comes at the right time