Media Release No. : 02/2025
Date : 25 April 2025
Media Release No 02 2025 – Fiji’s Pioneering Climate Insurance Program Delivers Over $107,000.00 in Payouts to Vulnerable Communities
Recipients during the handover
The Reserve Bank of Fiji (RBF) has commended SUN Insurance, for delivering over $107,000 in financial relief to 1,101 Fijians through a pioneering parametric microinsurance initiative, following heavy rainfall earlier this year. It also acknowledges the UN Development Programme (UNDP) and UN Capital Development Fund (UNCDF) for laying the foundation and their continued support in achieving this momentous occasion. At today’s special event at the Grand Pacific Hotel, the payouts were described as a major step forward for climate resilience in Fiji.
The pioneering microinsurance programme has achieved significant reach and impact, with 3,664 individuals signing up in the 2024/2025 insurance period for a total of $2.47 million in insurance protection countrywide. The Chairman of the SUN Insurance Board of Directors, Mr Padam Lala highlighted in his keynote address that, “today we reaffirm our dedication to providing effective financial protection against climate risks”, further noting that “the journey of parametric insurance in Fiji demonstrates what is possible when regulators, insurers, international organisations, and communities work together toward a common goal of climate resilience.
The products were co-created with the private sector and local communities through the UNCDF Pacific Insurance and Climate Adaptation Programme (PICAP), a joint UN initiative supported by the Governments of Australia, New Zealand and the United Kingdom and was launched in 2021 by SUN Insurance and Fiji Care Insurance.
The RBF, in August 2024 signed a Grant Agreement with InsuResilience Solutions Fund (ISF) together with partners Tower Insurance and SUN Insurance to lead the expansion of the parametric microinsurance products nationwide targeting the poor and vulnerable communities and ensuring it reaches those who need it the most. The RBF Governor in his remarks stated “In my view, this parametric microinsurance is more than a post-disaster payout. It offers a safety net to the most vulnerable and is a powerful and effective tool to unlock and enhance climate and resilience finance. Therefore, this payout showcases the tangible impact of parametric insurance as tool that provides timely, transparent and predictable payouts to those affected by natural disasters”.
SUN Insurance reported that for the current payout cycle, 394 male policyholders and 707 female policyholders received payouts. This distribution reflects the overall policyholder composition for the insurance period, whereby women account for 64% of total sign-ups. The figures are consistent with the ISF initiative’s objective of ensuring that parametric insurance products effectively reach villages, settlements, and rural communities; particularly women, who are disproportionately affected during and after natural disasters.
In his address, the Permanent Secretary for Rural and Maritime Development and Disaster Management, Mr Isoa Talemaibua congratulated the recipients of the insurance payouts stating, “you have demonstrated that you are responsible citizens and entrepreneurs by signing up to access climate risk insurance which would come in very handy in times of need”.
A recent payout survey conducted by UNCDF, UNDP and UN University, with the Fijian Ministry of Agriculture and Waterways (MOAW), showed that 87% of beneficiaries used previous payouts to restart income-generating activities, while others repaired homes or replenished food supplies after a natural disaster. Through PICAP, the UN will continue supporting Government and private sector partners to scale parametric insurance products and extend insurance protection to the most vulnerable communities.
UNDP Deputy Resident Representative Fiji, Mr Abduvakkos Abdurahmanov highlighted that “While Fiji is setting a regional benchmark with parametric insurance, our work is far from completed. With lessons from Fiji, we are now also supporting the expansion of parametric insurance in Samoa, Solomon Islands, Kiribati, Papua New Guinea, Tonga and soon Tuvalu to replicate this model, tailored to the unique risks in each country.”
As part of the ISF initiative, the Reserve Bank of Fiji extends its sincere appreciation to SUN Insurance and Tower Insurance for their leadership in maintaining the availability of parametric insurance within Fiji’s market. The Bank also reaffirmed its commitment to continued collaboration with all stakeholders to scale these innovative solutions, ensuring they reach those most at risk. “Our goal remains clear to ensure no one is left behind in our collective effort to build a more resilient and financially secure Fiji,” concluded Governor Ali.
About UNDP
The UN Development Programme is the lead UN agency fighting to end the injustice of poverty, inequality, and climate change. Working with our broad network of experts and partners in more than 170 countries, we help nations to build integrated, lasting solutions for people and planet.
About UNCDF
UNCDF mobilises and catalyses an increase in capital flows for SDG impactful investments to Member States, especially Least Developed Countries, contributing to sustainable economic growth and equitable prosperity. In partnership with UN entities and development partners, UNCDF delivers scalable, blended finance solutions to drive systemic change, pave the way for commercial finance, and contribute to the SDGs. We support market development by enabling entities to access finance in high-risk environments by deploying financial instruments, mechanisms and advisory.
About RBF
The Reserve Bank is Fiji’s central bank. Our objectives are to protect the value of currency in the interest of balanced and sustainable economic growth, formulate monetary policy, promote price stability and issue currency.
For any further information, please contact: –
Sheldon Chanel | Communications Leads at UNCDF Pacific – Sheldon.chanel@undp.org
Lepani Uluinaviti | Manager Project InsuResilience Solutions Fund – lepani@rbf.gov.fj