NDF boosts parametric hurricane protection with increased risk capacity for Corp-EFF

The Natural Disaster Fund (NDF), managed by the Global Parametrics team (a CelsiusPro Group company), has expanded access to parametric hurricane protection by increasing its risk capacity allocation to Corp-EFF Insurance Company Limited.

NDF has provided USD 4.7 million to expand the Flexible Hurricane Protection (FHP) programme, launched in 2022 to enhance the resilience of local communities in Dominica and Grenada, for the 2025 Atlantic Basin Hurricane Season.

The FHP programme offers parametric insurance protection to a broad range of beneficiaries, including micro, small, and medium-sized enterprises (MSMEs), cooperatives, households, fisherfolk, and farmers.

This coverage is available to both Credit Union members and the general public, providing assistance for recovery efforts after tropical storms and hurricanes.

The NDF Technical Assistance Facility (TAF), financed by the German Federal Ministry for Economic Cooperation and Development (BMZ), provided a catalytic grant to support the development and implementation of this innovative product, with funds contributing towards designing a simple, affordable, and personal coverage that would enable affected communities to bounce back faster following an impactful event.

Flexible Hurricane Protection provides six plan options, from Tropical Storm to Category 5 hurricane coverage. Payouts are triggered automatically by verified storm data, removing the need for claims assessment.

The FHP programme has proven effective when Hurricane Beryl hit Grenada on July 1, 2024, triggering a USD 1.45 million payout, the firms noted.

Corp-EFF disbursed funds to 40 policy holders, including members of the Grenada Nutmeg Association, within 15 days.

Among the policyholders there was a small-scale poultry farmer who used the funds to pay his staff, replenish essential supplies and maintain egg production, ensuring business continuity.

Policyholders in Dominica were also covered in the 2024 season, demonstrating increasing uptake and trust in the product.

Mark Rüegg, CEO CelsiusPro Group, stated: “We have been delighted to witness the growth of the FHP programme and observe the tangible contribution towards building resilience against tropical storms and hurricanes in the OECS. We look forward to the next phase of this partnership and collaborating to further integrate the FHP into the regional financial system.”

Under Corp-EFF’s leadership, the FHP programme has grown consistently year-on-year, selling 66 policies in 2022 and 164 in 2024 within a 6-week sales window.

CelsiusPro Group and Corp-EFF aim to scale FHP by embedding coverages within credit union and financial services loans, reaching thousands of vulnerable households and businesses.

Phoenix Belfield, Chairman Corp-EFF Insurance Company Limited, commented: “We’re seeing the impact that’s happening on the ground, and nothing sells better than when you’ve seen how others have been impacted by parametric protection. This speaks to the heart of the Caribbean problem, agriculture, social gaps, income gaps, and, of course, this is a disaster risk solution that really helps.

“At Corp-EFF Insurance, we are committed to delivering protection with purpose, especially to those most exposed to climate risk. This strategic partnership reflects our long-standing belief that insurance must be simple by design to provide economic stability and dignity to the vulnerable communities we serve. We look forward to scaling this solution and redefining resilience in the Caribbean.”