Insurance service provider Tower Insurance has completed its inaugural payout under its parametric insurance program.
Under its Rainfall Response Cover product, the insurance company paid $27,050 to 278 customers in Kadavu within just three weeks of heavy rainfall in late June.
The Rainfall Response Cover product was launched last November as a pilot for the 2025-2026 wet season, with support from the United Nations Capital Development Fund – through the Pacific Insurance and Climate Adaptation Programme, alongside the Reserve Bank of Fiji and the InsuResilience Solutions Fund.
During the pilot phase, premium subsidies have been made available through the central bank and the InsuResilience Solutions Fund.
Tower chief underwriting officer Ron Mudaliar said the product was designed to help build financial and climate resilience in communities vulnerable to extreme weather.
He said it provided an automatic cash payout when rainfall at an insured location reached an agreed threshold, without the need for an insurance assessor’s sign-off.
“We have a long-standing commitment to Fiji,” Mr Mudaliar said in a statement.
“Parametric insurance is another way we’re helping customers become more future ready, with fast financial support following severe weather.
“This is a significant milestone for Tower, but most importantly it demonstrates the real impact parametric insurance can have.
“Following heavy rainfall, nearly 300 Fijian families received a helping hand through our parametric rainfall product, enabling faster access to financial support when it was needed most.”
Mr Mudaliar said the payout also provided valuable learnings during the pilot phase that would help them scale the product ahead of its wider Fiji launch in August this year, with payouts ultimately targeted within seven days of a qualifying event.
“In the face of our changing climate, innovation has an important role to play in improving insurance accessibility and helping communities recover faster.
“This payout demonstrates the potential of parametric insurance, and we’re excited by the opportunities ahead to help make communities more resilient.”
