New PICA program launched

May 7, 2022 4:15 pm

The Launch of the Pacific Insurance and Climate Adaptation Program.

Climate change is increasingly affecting the vulnerable group, given our fragile infrastructure and limited resources to cope with the challenges.

These vulnerable groups face financial barriers in terms of accessing insurance products and other forms of support necessary for recovery.

However, these issues can now be a thing of the past, after the launch of the Pacific Insurance and Climate Adaptation Program.

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United Nations Capital Development Fund Regional Technical Specialist, Praneel Pritesh says the pilot program paves way for a climate disaster risk insurance, offered by Fiji Care and Sun Insurance.

“Program still in its pilot phase has amply demonstrated that through building partnerships, deploying appropriate tools and instruments like UNCDF performance grants, and providing technical advice and capacity building support, market players can be catalyzed into action to deliver solutions that address persistent development challenges.”

Pritesh adds the program will assist the vulnerable in society to have an adequate and sound financial footing to help them recover from any natural hazard.

“The work that PICAP has started in Fiji in developing and deploying inclusive and equal risk transfer solutions like parametric micro-insurance offers a ray of hope, to the extent the protection to women and vulnerable communities, build financial resilience and assist in faster recovery after a catastrophic event.”

Acting Australia’s High Commissioner to Fiji, Paul Wilson during the launch says the product represents the kind of self-help financial solutions needed in Fiji and the region.

“It is a natural fit that we support for the UNCDF-led Pacific Insurance and Climate Adaptation Programme. The Programme is leading the development of a unique climate and disaster risk parametric micro-insurance product for low-income households and MSMEs in the Pacific, with Fiji as the initial testing ground.”

Wilson adds that more than 1,300 Fijian households have signed up for the scheme in five months.

This program was jointly implemented by the UNCDF, UNDP, and the UN University Institute for Environment and Human Security, and is expected to expand into Tonga and Vanuatu.