By Stacy-ann Jarrett — The Practical Advisor
“Insurance is a Scam!”
You’ve heard it before — in barbershops, taxis, and corner shops across Jamaica. The sentiment is almost cultural: a mixture of frustration, mistrust, and misinformation. But let’s face it — vibes alone can’t rebuild a roof, feed a family, or restart an economy.
The truth is that successful personal financial management is not just about ambition — it’s about survival. And survival, in this climate and this economy, requires more than faith. It requires structure, strategy, and protection. The Jamaican government demonstrates its appreciation for a national financial planning strategy that is so aptly related to personal financial planning.
The Government’s Big-People Insurance
One of Jamaica’s primary risk to financial security and hopes for building wealth for the country is the unpredictability and increased devastation meted out by natural disasters, primarily hurricanes. For the period 2001 to 2010, hurricanes costed Jamaica about US$1.2Billion dollars, which would work out to over J$180Billion, costing about J$18M per year. A reliance on international aid or high-interest loans for recovery, were not providing the kind of speedy recovery necessary to stay on track with development goals, whilst also increasing Jamaica’s debt burden.
In 2021, the Jamaica Labour Party (JLP) had what I’ll call a bright, practical idea — get insurance for the country itself, alongside the group insurance they had with the Caribbean Catastrosphe Risk Insurance Facility (CCRIF). They bought into a financial instrument called a Catastrophe Bond (Cat Bond) — a kind of hurricane insurance on a national scale as part of their multilayered approach to Disaster Risk financial protection in light of climate change and the increasing potential of damage due to hurricane systems.
The idea was simple: if Jamaica took a direct hit from a massive hurricane, the Cat Bond would “trigger,” releasing hundreds of millions of U.S. dollars for quick recovery. It was part of a multi-layered disaster financing plan that also included the Caribbean Catastrophe Risk Insurance Facility (CCRIF), contingency funds, and other credit options.
Of course, critics scoffed. Some in opposition — and many regular Jamaicans — said it would never pay out. The bond had parameters, they argued, that might never be met (kind of like how we grumble about the fine print in our personal insurance policies).
The Test of the System — Beryl and Melissa
Then came Hurricane Beryl (2024) — strong enough to rattle us, but not quite enough to meet the bond’s strict trigger. It felt like déjà vu for skeptics.
Still, the country didn’t falter. The CCRIF parametric insurance kicked in and provided a payout of roughly US $16.3 million, which helped Jamaica fund rapid relief operations and infrastructure restoration within days. Additional donor support and contingency funds were activated, ensuring that the Government could deliver assistance quickly — no borrowing delays, no begging bowl.
That’s what a properly stacked financial safety net looks like: CCRIF acted as the emergency fund, while the Cat Bond was the “big-people insurance” for when the unimaginable hits.
And then it did.
In 2025, Hurricane Melissa roared toward Jamaica as a Category 5 monster, with global forecasts predicting catastrophic losses. But Jamaica stood ready. The Cat Bond triggered, releasing over US $150 million to support recovery — money that arrived fast, without debt, without begging.
That’s financial sovereignty in action.
Pride and Sovereignty — The Power of Insurance
Think about it: Jamaica didn’t have to wait for aid or loans. We had already done the financial planning. That’s what insurance does — it allows recovery to happen with dignity, pride, and independence.
Your life is no different.
We all face personal catastrophes: job loss, illness, accidents, the sudden loss of a breadwinner. Those are life’s hurricanes. You may not know when they’ll come, but preparation determines how you rise after.
Your Personal Cat Bond
If Jamaica can buy insurance to protect the nation, why shouldn’t you do the same for your household?
Think of your financial safety net in layers:
- Emergency Fund – like CCRIF, covers the smaller hits.
- Health, Life & Critical Illness Insurance – your personal Cat Bond.
- Long-term Investments & Retirement Funds – your rebuilding capital after the storm.
Insurance isn’t fraud. It’s foresight. It’s your personal declaration that your family will not beg when disaster comes.
The Practical Advisor’s Challenge
We can’t predict life’s storms, but we can prepare for them.
Let’s have that fact-finding consultation — the one that identifies your personal risks and starts building your protection stack. Because in the event of a Category 5 life storm, the real question is:
How much Cat Bond do you have?
Book your consultation with the link below and lets find out.