Media Release No. : 01/2024
Date : 20 September 2024
Media Release No. 1 – Reserve Bank and Local Insurers Partner with InsuResilience Solutions Fund to Enhance Parametric Insurance in Fiji
Governor RBF, Ariff Ali (Middle), Tower Insurance Fiji Country Manager – Joseph Magnus (left) and SUN Insurance Company Ltd Principal Officer – Tarlochan Singh (right) after a signing ceremony to mark the commencement of the Grant Agreement.
The Reserve Bank of Fiji (RBF) in collaboration with SUN Insurance Company Ltd (SUN) and Tower Insurance (Tower) have partnered with InsuResilience Solutions Fund (ISF) in a project aimed at enhancing financial resilience among vulnerable communities throughout Fiji.
The initiative, titled “Introducing New and Scaling Up Existing Climate Risk Parametric Insurance Products in Fiji,” will be for two years from 01 August 2024 and will also involve collaboration with demand side partners including Fiji Crop and Livestock Council and The Sugar Cane Growers Council.
The ISF, an implementing programme of the InsuResilience Global Partnership, is funded by the German development bank KfW on behalf of the Federal Ministry for Economic Cooperation and Development and managed by Frankfurt School of Finance & Management. The ISF supports the development of innovative and sustainable climate risk insurance products and insurance markets to improve the resilience of vulnerable households against the impacts of climate change and natural disasters. The ISF provides grant-based co-financing for this project, which is designed to extend the reach of micro-level parametric insurance products to those who are particularly susceptible to the impacts of extreme weather events in Fiji.
The project will build on the foundations developed by the UN Capital Development Fund’s Pacific Insurance and Climate Adaptation Programme (PICAP), jointly implemented with the UN Development Programme and UN University Institute for Environment and Human Security. The project aims to provide access to climate risk insurance products for 5,000 climate-vulnerable households. The parametric insurance cover provides financial protection against the adverse effects of climate-related events, thereby supporting a more swift and effective recovery and contributing to the long term financial resilience of these vulnerable households.
RBF Governor Ariff Ali mentioned “We are excited to announce this new project on the back of the esteemed Nestor Espenilla Jr Financial Inclusion Innovation award won by the RBF during the recent 2024 Alliance for Financial Inclusion (AFI) Global Policy Forum Awards, which particularly signified the successful implementation and impact of existing parametric insurance products which we are now aiming to expand. This initiative aligns with the vision of the National Financial Inclusion Strategy 2022 -2030 of empowering Fijians to build resilient and sustainable livelihoods and businesses through financial inclusion.”
Parametric insurance products are designed to allow rapid payouts based on predefined weather triggers, such as rainfall levels or wind speeds, thereby ensuring timely financial support when it is most needed. This proactive approach ensures that affected households can access necessary resources without delay, facilitating a quicker recovery.
“We are excited to be a partner in this project” said Tarlochan Singh, Principal Officer SUN Insurance. “Our goal is to make climate risk insurance accessible and effective for those who need it the most, ensuring that their livelihoods and businesses are safeguarded against the uncertainties of changing climate.”
Joseph Magnus, Tower’s Country Manager, added, “Tower has been helping protect our communities with insurance for 150 years. With parametric insurance and this new partnership, we’re helping to increase insurance awareness, accessibility and penetration for even more Fijian people. Tower is proud to help build a more resilient and equitable Fiji, in the face of changing climate.”
RBF, SUN, and Tower extend their gratitude to the InsuResilience Solutions Fund for their financial support and the Pacific Insurance and Climate Adaptation Programme in making this project possible. Together we are paving the way for a more secure and resilient future for Fiji’s vulnerable population.
For any further information, please contact: –
Mr Lepani Uluinaviti | Manager Project InsuResilience Solutions Fund
lepani@rbf.gov.fj
(679) 322 3217 | 8697820