Approximately 700 sugarcane farmers in Fiji’s Western Division have signed up for a parametric insurance initiative designed to enhance their financial resilience against climate-related challenges, as announced by the Sugar Cane Growers Council. This move reflects an increasing recognition among growers of the crucial role that parametric insurance can play, particularly as sugarcane farming is significantly affected by weather conditions.
The insurance scheme, facilitated by Sun Insurance and TOWER Insurance, receives backing from the InsuResilience Solutions Fund Platform and is guided by the Reserve Bank of Fiji. It provides coverage options for growers ranging from $1,000 to $2,000, with half of the premium costs subsidized to make participation more accessible.
Interest in the initiative is growing, especially in the Northern Division, where a joint awareness program is scheduled to take place soon to further encourage participation. Vimal Dutt, the Council’s CEO, emphasized the importance of parametric insurance in aiding farmers during challenging times, referring to its capacity to provide crucial support, even in small amounts. He suggested that making parametric insurance mandatory for sugarcane growers could add significant benefits, particularly given the absence of a dedicated crop insurance system in the industry.
While participation in this scheme remains voluntary, the Council has observed a notable increase in confidence, attributed to timely payouts during adverse weather events. With four years of implementation behind it, the parametric insurance scheme continues to grow annually, solidifying its position as a vital tool in managing risks and boosting resilience for sugarcane growers in Fiji amidst the challenges posed by climate change.
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