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Illustration of Parametric micro insurance, a ‘lifesaver’

“Insurance Innovation: A Lifesaver for Fiji’s Cane Farmers”

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Former schoolteacher Salaseini Litidamu Koroi from Buabua in Lautoka transitioned to sugarcane farming upon her retirement in 2013. Two towns away, Subamma from Mataniwai in Tavua has dedicated over 29 years to sugarcane farming. These two women recently became among the first beneficiaries of an innovative parametric microinsurance scheme designed to provide financial protection to smallholder farmers against severe weather events that can devastate crops.

This type of insurance has proven invaluable for both women. With a combined 40 years of farming experience, they have witnessed the damaging impacts of extreme weather firsthand. Subamma recounted her struggle after the passing of her husband in 2018, taking over her eight-acre farm while facing intense rainfall and flooding that wiped out her crops. Having been on microinsurance for two years, she notes that while it can’t fully replace lost income, it has significantly assisted her in restarting her farming operations.

Meanwhile, in Lautoka, Ms. Koroi shared her experiences, noting that their cane production has declined due to changing weather patterns. Traditionally hot and sunny, the climate has shifted, leading to less sunny days which negatively affect cane growth and sweetness. She emphasized that rainfall has become more intense, frequently leading to flooding and reduced cane tonnage across the region.

This year, both farmers enrolled in the recently enhanced parametric microinsurance that covers a wide range of climate-related events, such as floods and droughts, in addition to cyclones. Launched in 2021, the scheme gained traction due to collaborations between the UNDP and local insurance providers, supported by various governments and UN agencies.

Initially covering only 1,000 people, the project has expanded to reach 25,000 households in Fiji, with plans to extend to other Pacific nations facing similar climate challenges, including Vanuatu, Tuvalu, and Kiribati. The Reserve Bank of Fiji is now leading the promotion of this crucial insurance to safeguard communities against climate change’s effects.

RBF Governor Ariff Ali highlighted the urgency of addressing climate change’s impact on vulnerable populations, emphasizing the need for resilience-building measures that empower communities to not just survive but thrive.

Overall, this parametric microinsurance initiative is a beacon of hope for smallholder farmers in Fiji, offering much-needed financial security as they navigate the uncertainties posed by climate change. By expanding coverage and support, the program aims to enhance adaptability and resilience in agricultural communities, ultimately fostering a more sustainable future for farmers across the Pacific region.


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