The project team – consisting of CCRIF, MicroEnsure, Munich Re and MCII – continues to implement this project in three of the five focal countries (Saint Lucia, Jamaica and Grenada).
After intensive stakeholder consultation, the product design of the Livelihood Protection Policy (LPP) has been finalised with an estimated premium cost of 8-10% of the payout limit. The Loan Portfolio Cover (LPC) design is still being discussed by stakeholders. The LPP is targeted for roll out in Jamaica and Saint Lucia in early 2013.
On 12 October 2012, the project was promoted at a workshop entitled Climate Risk Insurance in the Context of Adaptation and Loss & Damage, hosted by MCII in Barbados. The workshop, involving Caribbean-based actors from the public and private sectors, international climate negotiators under the UNFCCC and donor organisations, was held to explore insurance solutions to manage climate-related risks and to discuss specific innovations currently under development in the Caribbean. Ms Sobiah Becker of MCII and Ms Stacia Yearwood of CCRIF delivered a presentation on the project, which included an introduction to the Livelihood Protection Policy (LPP) and the Loan Portfolio Cover (LPC). See report, Climate Risk Insurance in the Context of Adaptation and Loss & Damage, for additional details about this workshop.
On October 16, MCII and EC Global introduced the LPP to the local insurance industry at a press conference (see video).
In August 2011, the project team conducted meetings, workshops and community visits with stakeholders in five pilot countries to introduce the programme, establish relationships with key stakeholders and to gather data. These meetings involved consulting with representatives of agricultural agencies and cooperatives; ministries of agriculture, tourism and finance and various financial institutions – including credit unions, as well as farmers from the major crop industries (including sugar cane, banana, coffee, cocoa, and coconut), and livestock and fisheries industries.
In November, product ideas were discussed with stakeholders in Jamaica, Saint Lucia and Grenada at meetings and workshops hosted by the Saint Lucia Development Bank, Development Bank of Jamaica and Ministry of Agriculture in Grenada. Development of product ideas in Belize and Guyana, which were to be included in the initial phase, have been shifted later in order to enable a more detailed look at their risks and needs.
Field visits will take place in early 2012 to confirm distribution channels, banks and insurance companies. The products will be fine-tuned and the countries visited again to present the proposed business plans.