The country is witnessing a significant increase in the uptake of parametric insurance as families become more aware of the need for protection against severe weather events. The number of policyholders has surged from slightly above one thousand to over four thousand within the current year.
Finance Minister Esrom Immanuel highlighted that the program is experiencing its most robust phase since its inception. He announced ambitious targets for the future, aiming for ten thousand policyholders by next year, bolstered by new product offerings from local insurance providers.
To cater to diverse needs, SUN Insurance has recently launched a revised selection of products, which includes a plan specifically designed for social welfare recipients and individuals with disabilities. In a complementary move, Tower Insurance has introduced a standalone rainfall product, which is particularly relevant as the wet and cyclone season approaches.
Immanuel reassured potential customers that the insurance premiums are quite affordable. For farmers, the cost of insurance is set at $100 for a sum insured of $1,000, and $200 for $2,000. Additionally, welfare products are being offered at a premium of just $50 per annum for a sum insured of $500.
The initiative is poised to enhance community resilience by ensuring prompt and predictable payouts following disasters, which is anticipated to alleviate the burden on emergency relief efforts and accelerate household recovery processes. As more families enroll in these programs, the overall preparedness for severe weather and disaster resilience in the community continues to strengthen, fostering a more secure future.
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