Approximately 2,000 social welfare recipients in Fiji will soon benefit from a new micro parametric insurance scheme designed to safeguard against climate and disaster risks. This initiative follows a recent partnership formalized between the Reserve Bank of Fiji (RBF) and the Ministry of Women and Social Protection. The agreement establishes a framework for subsidizing insurance premiums for the targeted recipients, highlighting the critical need for financial protection in the face of increasing climate challenges.
This insurance program is part of a broader, grant-funded endeavor led by the RBF, in collaboration with Tower Insurance and SUN Insurance, and backed by the InsuResilience Solutions Fund (ISF). The project aims to bolster financial resilience within vulnerable communities by providing them with crucial support in times of crisis. RBF Governor Ariff Ali mentioned that this is the sixth such agreement under the project, signaling a growing commitment to supporting those most in need.
Ali emphasized the significance of direct financial assistance reaching those at risk, stating, “By strengthening climate risk protection for vulnerable households, we are making tangible progress in building resilience against increasing climate threats.” The Ministry’s Permanent Secretary, Eseta Nadakuitavuki, echoed these sentiments, describing the collaboration as a vital step in safeguarding and empowering Fiji’s most disadvantaged communities.
This agreement is also a critical move towards scaling climate risk financing solutions within Fiji, reflecting the RBF’s dedication to fostering innovative financial instruments. The ongoing collaboration with various agricultural associations, including the Cane Farmers’ Cooperative Savings and Loans Association and the Fiji Crop and Livestock Council, adds depth to the initiative, as these organizations were involved in similar agreements a year prior.
Fiji’s concerted efforts to enhance climate resilience through accessible insurance options offer hope for affected communities grappling with the adverse effects of climate change. By taking proactive measures to protect vulnerable households, the government is paving the way for sustainable economic recovery and improved quality of life for its citizens, ensuring that no one is left behind as climate challenges continue to mount.
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