The United Nations World Food Programme (WFP) has supported Caribbean nations to ensure that climate insurance payouts triggered by category-5 Hurricane Beryl in July last year are used for social subsidies to get the most vulnerable back on their feet.
The Governments of Grenada, Jamaica, and St Vincent and the Grenadines will use a US$5.5 million portion of the payout to assist people affected by the tropical storm.
In Grenada alone, 34,000 people (30% of the population) required emergency assistance after Hurricane Beryl. Now, it is the first country to provide subsidies to people who lost income under the Beryl Relief Income Support Programme (BRISP).
WFP and CCRIF SPC (formerly the Caribbean Catastrophe Risk Insurance Facility) work together to link tropical cyclone and excess rainfall insurance policies with national social protection systems. Through an innovative model, financial support allows countries to top-up their sovereign insurance coverage on the condition that a fixed percentage of the payout is allocated for social assistance if and when policies are triggered.
“Recognising the limited fiscal space of Caribbean governments, we know that it is crucial to strengthen national systems to ensure that support reaches the people who need it most when disaster strikes,” said Brian Bogart, Representative of the WFP Caribbean Multi-Country Office. “Hurricane Beryl’s impact was significant, and many people are still struggling to recover. WFP is committed to supporting strategies that assist people as they recover, without increasing the long-term debt burden of small island nations and derailing progress on national development goals.”
Chief Executive Officer of CCRIF Isaac Anthony shared that “as the leading provider of parametric insurance coverage, in the Caribbean and Central America, we are pleased that CCRIF’s products offered to governments, can be used to make their social protection systems more shock responsive by facilitating vertical and horizontal expansion of social protection systems, when a country’s policy is triggered.” Citing the examples of Grenada and Jamaica, Anthony indicated that the government of Grenada received payouts under its tropical cyclone and excess rainfall policies from CCRIF as a result of Hurricane Beryl, totalling US$43 million, of which US$4.6 million was allocated to social protection.
WFP first introduced insurance policy top-up agreements in Dominica in 2021. Since then, WFP has helped expand the model to Belize, Dominica and St Lucia, with support from the European Union, the Government of Canada and the Global Shield Financing Facility. The Canada-Caricom Climate Adaptation has recently provided funding to include Antigua and Barbuda, Grenada, Jamaica, and St Vincent and the Grenadines.
“In the face of increasing climate-related challenges, it is imperative that we strengthen our collaborative efforts to build resilience within our Caribbean communities,” said Isaac Solomon, Acting President of the Caribbean Development Bank.” Innovative insurance models supported by CCRIF SPC and WFP are an effective method to get relief to those most affected in a timely manner.”
“Canada was keen to build on the work that started in 2021,” said Abebech Assefa, Head of Cooperation for the Eastern Caribbean at Canada’s International Trade–Global Affairs Canada. “The idea to connect a portion of CCRIF SPC payouts to social protection systems helps ensure that these funds reach the most vulnerable people. The recent experience with Hurricane Beryl has provided an opportunity to put the concept to the test.”
Caribbean small island developing states (SIDS) are on the frontline of climate change. The WFP Caribbean Multi-Country Office was established in 2018 and has since supported governments in scaling up climate solutions, including early warning systems, anticipatory action and insurance to protect food-insecure communities.
WFP
