UNCDF announces new parametric climate products for Fiji
The United Nations Capital Development Fund (UNCDF) has announced the introduction of two new parametric microinsurance products to cushion the impact of climate change in Fiji.
The products, underpinned by research and direct-to-client evidence, were developed through technical assistance from UNCDF with input and feedback from various partners and stakeholders.
Fiji’s Minister of Economy and Minister Responsible for Climate Change, Aiyaz Sayed-Khaiyum, commented on the development saying: “For farmers, market vendors and others living in climate risk areas, access Immediate access to funds after a disaster can make the difference between saved livelihoods and abject poverty.
“The government has had to remain nimble and innovative to ensure communities are able to withstand and adapt to the dire consequences of the climate emergency.”
“With UNCDF and the private sector, the government has used parametric microinsurance to make funds quickly available to nearly 1,400 Fijians in 2021. We aim to reach another 4,000 vulnerable people in 2022.”
Krishneil Narayan, New Zealand’s Senior Development Advisor for Climate Change in Fiji, added: “These new products will improve the financial preparedness of climate-vulnerable communities and welfare recipients through the introduction of hedges. affordable cyclone damage insurance that was not available. to them before.
Building on existing microinsurance products launched last year, the two new insurance plans come with enhanced features, including options for increased payout and coverage for multiple events over the course of a year. ‘insurance.
The program will soon launch pilot projects in Tonga and Vanuatu, according to UNCDF, with plans underway to expand to Samoa, Papua New Guinea and the Solomon Islands from 2023.