Former schoolteacher Salaseini Litidamu Koroi, who transitioned to sugarcane farming in Buabua, Lautoka, after her retirement in 2013, is one of the beneficiaries of a new parametric micro insurance program aimed at supporting vulnerable communities and smallholder farmers. Alongside her is Subamma from Mataniwai in Tavua, who has cultivated sugarcane for over 29 years.
The two women recently received this innovative financial protection, which is designed to shield farmers’ crops from severe weather conditions. Their extensive experience in farming has shown them how extreme weather events can wreak havoc on crop yields and significantly impact their incomes.
Subamma shared her challenges after taking over the farm following her husband’s passing in 2018. Significant rainfall and flooding from 2018 to 2021 led to severe losses, which has made it difficult for her to recover fully. However, two years of microinsurance have helped her rebound and begin planting again, although it still doesn’t fully offset the income losses during adverse weather events.
In Buabua, Koroi and her husband Jekesoni also noted a decline in their cane production over the years. They’ve experienced changing weather patterns, with less heat and reduced sunlight impacting their crops’ growth and sweetness. After a decrease in yield this year due to unfavorable weather conditions, Koroi opted into the insured program that covers various climate-related risks, including flooding and drought.
This parametric micro insurance began as a pilot program in Fiji under the Pacific Insurance and Climate Adaptation Programme (PICAP) and has expanded, supporting vulnerable communities throughout the Pacific region, including plans to scale up in other countries like Vanuatu and Tuvalu. The initiative has gained momentum, increasing from just 1,000 participants to 25,000 households, providing comprehensive protection for families.
The Reserve Bank of Fiji has taken charge of promoting this insurance program, addressing the pressing issue of climate change. RBF Governor Ariff Ali emphasized the importance of enhancing the resilience of the most vulnerable communities to ensure they can not only survive but thrive in the face of climate-related challenges.
This development showcases the proactive measures being taken to support agricultural communities facing the adverse effects of climate change and highlights the significant role that insurance can play in safeguarding livelihoods. With continued efforts and expansion of such programs, there is hope for a more resilient agricultural sector amidst changing climatic conditions.
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