Some 2000 social welfare recipients will be able to access micro parametric insurance coverage that will provide crucial financial protection against climate and disaster risks.
This follows the signing of an agreement between the Reserve Bank of Fiji (RBF) and the Ministry of Women and Social Protection that formalises insurance premium subsidy support for the social welfare recipients.
The initiative is part of a grant-funded project led by the RBF in partnership with Tower Insurance and SUN Insurance, and co-financed by the InsuResilience Solutions Fund (ISF), and aims to enhance financial resilience among at-risk communities.
RBF governor Ariff Ali said this was the sixth such agreement signed under the project with demand-side partners, or aggregators since August last year.
He noted the potential for expanding assistance in the remaining term of the project, which was set to conclude on July 31 next year.
“This arrangement ensures that financial assistance directly reaches those who need it most,” Mr Ali said.
“By strengthening climate risk protection for vulnerable households, we are making tangible progress in building resilience against increasing climate threats.”
Ministry permanent secretary Eseta Nadakuitavuki acknowledged the support of partners for this parametric insurance initiative.
“This collaboration is a vital step in protecting, empowering and strengthening the resilience of our most vulnerable communities,” Ms Nadakuitavuki said.
The agreement represents a critical step in scaling climate risk financing solutions in the country.
The RBF said it underscored its leadership in fostering innovative financial instruments that would enhance financial resilience while promoting inclusive economic growth.
The RBF also acknowledged the United Nations Capital Development Fund (UNCDF) for its foundational framework and ongoing technical and financial support that had been instrumental in advancing this initiative.
Other aggregator partners including Cane Farmers’ Cooperative Savings and Loans Association (CCSLA), Fiji Crop and Livestock Council (FCLC), and Nature’s Way Cooperative Fiji Ltd had signed the agreement in November last year.
