A comprehensive review of Fiji’s insurance sector is set to commence, as announced by the Reserve Bank of Fiji (RBF) Governor Ariff Ali during the Micro Parametric Insurance Payout event in Suva. The review aims to assess existing insurance products and investigate the development of new parametric insurance solutions tailored for various sectors and communities.
The RBF is leading this initiative in collaboration with the InsuResilience Solutions Fund (ISF), which is co-financed by Germany through partnerships with SUN Insurance and Tower Insurance. The implementation of this micro parametric insurance initiative began in 2021, backed by the UN Development Programme and the UN Capital Development Fund as part of the Pacific Insurance and Climate Adaptation Program.
Governor Ali emphasized the initiative’s alignment with Fiji’s National Financial Inclusion Strategy 2022-2030, highlighting the commitment to ensure accessible and affordable financial products for all Fijians, particularly targeting vulnerable and financially excluded groups. The initiative aims to onboard 5,000 policyholders, with a focus on 50% women and 60% from poor and vulnerable communities, while also raising awareness about the benefits of parametric insurance for an additional 20,000 Fijians.
In the past, similar collaborations have aimed to provide climate risk insurance to vulnerable households in Fiji. The previous efforts included a notable partnership involving the RBF, SUN Insurance, Tower Insurance, and the ISF, which led to effective solutions during climate-related crises. With these programs, communities can expect quicker recovery through timely financial assistance during adverse weather events, reinforcing their resilience.
This new review of insurance products marks a significant step forward in enhancing financial security and resilience for Fiji’s vulnerable populations. By actively addressing the needs of these communities, the government aims to lay the groundwork for sustainable recovery and improved quality of life as the impacts of climate change continue to pose challenges. This initiative reflects a promising commitment to inclusivity and long-term economic stability for all Fijians.
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