The UN Capital Development Fund (UNCDF) has announced the introduction of two new parametric micro-insurance products to cushion the impact of climate change in Fiji.
The products, backed by customer-facing research and evidence, have been developed through technical assistance from UNCDF with inputs and feedback from various partners and stakeholders.
Fijian Minister for Economy and Minister responsible for Climate Change, Aiyaz Sayed-Khaiyum, commented on the development, stating, “For farmers, market vendors and others living in climate risk areas, immediate access to funds after a disaster can mean the difference between a livelihood saved and abject poverty.”
“Government has had to remain agile and innovative to ensure communities are able to withstand and adapt to the dire impacts of the climate emergency.”
“With UNCDF and the private sector, Government has used parametric micro-insurance to make rapid funds accessible for nearly 1400 Fijians in 2021. We’re aiming to reach another 4000 vulnerable people in 2022.”
Krishneil Narayan, New Zealand’s Senior Development Advisor for Climate Change in Fiji, added, “These new products will improve the financial preparedness of climate vulnerable communities and social welfare recipients through the introduction of affordable insurance covers against the damages caused by cyclones which were not available to them before.”
Building on the existing micro-insurance products launched last year, the two new insurance schemes come with enhanced features, including options for increased payout and coverage for multiple events within one policy year.
The Programme will soon launch pilot schemes in Tonga and Vanuatu, says the UNCDF, with plans underway to expand to Samoa, Papua New Guinea, and the Solomon Islands from 2023.
