The United Nations World Food Programme (WFP) and the Government of the Commonwealth of Dominica have signed an innovative agreement to strengthen the ability to deliver assistance to the most vulnerable people following a climate shock by linking social protection systems to the payouts made by the CCRIF SPC (formerly known as the Caribbean Catastrophe Risk Insurance Facility).
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Since 2007, Dominica has been a member of the CCRIF SPC, a segregated portfolio company (SPC) that provides insurance coverage for catastrophic hurricanes, earthquakes and excess rainfalls. The country has purchased insurance coverage and received payouts following major climatic events. Disbursements are made within 14 days. Since 2007, the company has made 54 payouts totalling US$ 245 million to 16 of its member states in the Caribbean and Central America.
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...the initiative shows that parametric insurance enables social protection policies and strategies to become more shock responsive, facilitating both vertical and horizontal expansion of a country’s social protection systems when most needed. WFP is contributing a total of US$ 300,000 over a two-year period, towards the premium for the CCRIF SPC Tropical Cyclone Policy for the 2021/22 and 2022/23 policy years so that a portion of payouts can be channelled through national social protection programmes following a tropical cyclone event. This innovative approach will enable rapid support to affected populations in the form of cash payments.
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WFP has been working with the government of Dominica since 2017 on strengthening social protection systems to make them more shock responsive, as part of a broader Technical Assistance Agreement that also aims to strengthen food security and nutrition interventions, disaster risk finance strategies and systems, emergency preparedness and response planning, and provide emergency response support.
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