‘First-of-its-kind’ Climate Risk Insurance developed
November 12, 2021 4:21 pm
325 social welfare recipients living in high disaster risk locations in Fiji will be included in a pilot climate risk insurance project.
The project which started on November 1st will run for 12 months.
The United Nations World Food Programme and the UN Capital Development Fund are partnering with the Ministry of Poverty Alleviation to pilot this first parametric micro-insurance.
UNCDF Pacific Insurance and Climate Adaptation Programme Manager, Krishnan Narasimhan says the insurance can help build the resilience of vulnerable populations facing increasing exposure to climate shocks, through timely access to financial assistance.
“I am sure that this pilot will also be an important stepping stone for scaling up, of what could become potentially a very rewarding adaptive social protection for the most vulnerable groups in Fiji and the Pacific.”
UNCDF Executive Secretary, Preeti Sinha says developing climate and disaster risk insurance solutions for vulnerable segments is a priority for them.
Sinha says in addition to being some of the most vulnerable members of society, social welfare beneficiaries in Fiji also rely heavily on government support as they confront extreme weather events that are increasing in both intensity and frequency.
The scheme comes into effect in time for the start of Fiji’s cyclone season which lasts until April each year.
Two local insurance companies, FijiCare and Sun Insurance, are underwriting the risk with UNCDF providing the technical assistance in developing the product and WFP is identifying the high-risk locations and covering the premiums.