Fiji, India and the United Nations have announced the launch of the ‘Scaling Climate and Disaster Risk Financing Framework and Parametric Insurance in Fiji’ project.
This initiative was created in collaboration between the United Nations Capital Development Fund (UNCDF), the India-UN Partnership Fund, the United Nations Office for South-South Cooperation (UNOSSC) and the Fiji Government.
It refines and expands coverage of the parametric insurance product that was first launched in 2021. It aims to strengthen Fiji’s financial resilience against climate change and natural disasters.
According to the announcement, the project will be jointly implemented by UNCDF and the Fiji Government over the span of 18-months.
It was supported by a funding of approximately US$700,000 from the Government of India, through the India UN Development Partnership Fund, managed by the United Nations Office for South-South Cooperation.
While launching the project, Hon. Prof. Biman Prasad, Deputy Prime Minister and Minister for Finance, Strategic Planning, National Development and Statistics said: “The Fiji Government understands the urgent need for innovative solutions to safeguard vulnerable segments of our communities such as women, persons with disabilities, smallholder farmers and our social welfare recipients, against the escalating threats posed by climate change,”
“To further ease the burden on vulnerable segments, the Government has retained the policy of keeping the premiums on all climate and disaster risk parametric insurance products VAT-free. This is expected to provide financial relief to these households and increase access to the product. In addition, as a government, we have set a target to include a minimum of 2,000 social welfare recipients under this scheme to broaden the safety net and build resilience across the country.”
This new initiative builds on the ‘Climate Disaster Risk Financing Framework and Parametric Insurance (pilot) Project’, which equipped thousands of households and communities with tailored Climate Disaster Risk Financing Instruments (CDRFI).
Including the Pacific’s first parametric insurance product, offering vital support against cyclonic winds and heavy rainfall.
The project is described as an ambitious project as it aims to cover a minimum of 5,000 households, roughly 25,000 individuals, for the next cyclone season, increasing the coverage by more than double from year one.
The High Commissioner of India, representing the India-UN Development Partnership Fund, stated: “India’s approach to development partnership is completely demand driven and has a strong focus on high impact community oriented projects. The project to scale up Climate and Disaster Risk Financing Framework and Parametric Insurance in Fiji along with partner UN agencies showcases India’s steadfast commitment to assisting the most vulnerable communities across the world, on the front line of climate change.”
He added: “India’s well-established parametric insurance solutions, particularly for crops and livestock farmers, will serve as valuable resources for Fiji. Through this partnership, we are not only sharing expertise but cultivating enduring friendships that will strengthen our collective ability to address the challenges of our times.”
