Former schoolteacher Salaseini Litidamu Koroi from Buabua in Lautoka transitioned to sugarcane farming after she retired in 2013. Similarly, Subamma from Mataniwai in Tavua has dedicated more than 29 years to farming cane. Both women recently became among the first recipients of a new scaled-up parametric micro insurance, aimed at providing financial protection for smallholder farmers against extreme weather conditions.
This innovative insurance comes as a much-needed support for the farmers, who collectively possess 40 years of experience and have witnessed the devastating effects of extreme weather on their crops. Subamma shared her personal struggles, noting that after her husband passed away in 2018, she managed her eight acres of farmland but suffered extensive losses due to heavy rains and flooding between 2018 and 2021. Although the micro insurance cannot fully bridge the income gap caused by such weather events, it has significantly aided her in restarting her farm.
In Lautoka, Koroi reflected on the changing weather patterns since she and her husband began their farming journey. Though they initially enjoyed successful crops from 2013 to 2015, they have seen a decline in production due to erratic climate conditions. Koroi emphasized that droughts are not foreign to Fiji, but the recent trend of cooler, overcast days has severely impacted crop sweetness.
This year, she opted to join the parametric micro insurance, which now covers a range of climate-related events such as flooding and cyclones. With the insurance scheme initiated in 2021, its scope has expanded from merely covering wind damage to a more comprehensive protection package.
The initiative, spearheaded by the United Nations Development Programme (UNDP) and the United Nations Capital Development Fund (UNCDF), has seen remarkable growth in participation. While insurance uptake has historically been low throughout Fiji, the parametric micro insurance program has successfully engaged vulnerable communities, expanding from covering just 1,000 individuals to now encompassing 25,000 households.
UNDP resident representative Munkhtuya Altangerell highlighted that Fiji is leading this initiative, paving the way for replication in other regions affected by climate change, including Vanuatu, Tuvalu, Kiribati, and Papua New Guinea. The Reserve Bank of Fiji has now taken the reins in promoting this vital insurance to help improve the resilience of communities grappling with the pressing impacts of climate change.
Ariff Ali, Governor of the Reserve Bank of Fiji, stressed the urgency of addressing climate change and supporting the most vulnerable groups, ensuring they are equipped to not only survive but thrive amidst these challenges.
This positive development in insurance coverage for vulnerable farmers offers hope for enhancing resilience against climate-induced adversities, allowing them a greater chance to recover and sustain their livelihoods.
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