Fifteen individuals representing over 1,100 parametric insurance policyholders were awarded payout certificates yesterday at the Grand Pacific Hotel. This distribution follows three weather-trigger events in the period of 2024/2025. The parametric insurance is designed for swift payouts in response to severe weather conditions, shielding policyholders from substantial financial losses related to disasters such as cyclones.
Padam Lala, chairman of Sun Insurance, highlighted the growth in their policyholder base, which now totals 3,664 individuals—an impressive 100% increase. He confirmed that the total amount insured has reached approximately $2.47 million, with claims exceeding $107,000 currently under processing, expected to be paid out soon.
RBF Governor Ariff Ali underscored the importance of this insurance for local businesses and farmers, indicating that climate-related events are becoming increasingly frequent and damaging. He noted that developing economies face tenfold the economic damage due to climatic events compared to developed nations, emphasizing the financial strain this places on government resources.
Emily Qio, one of the beneficiaries, expressed her gratitude for the payout, stating it will significantly assist her family and small business activities, including catering and gardening. She pointed out that the insurance was particularly helpful in rebuilding her business after weather disruptions.
The parametric insurance is accessible to a range of community members, including farmers, fishermen, market vendors, and those participating in social welfare programs. Interested individuals can acquire a policy through SUN Insurance or Tower Insurance branches.
Additionally, this initiative aligns with ongoing efforts to expand climate risk insurance across Fiji, a response to the increasing severity of climate change. Previous partnerships, as seen in a collaboration involving the Reserve Bank of Fiji, SUN Insurance, Tower Insurance, and the InsuResilience Solutions Fund, aim to further enhance access to such essential financial protection for vulnerable households.
Fiji’s commitment to supporting its most at-risk communities reflects a proactive approach in addressing climate impacts and fostering economic resilience. By ensuring timely assistance through these insurance products, many individuals and families remain hopeful for a sustainable future despite the increasing unpredictability of climate conditions.
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