TOWER Insurance recently unveiled its innovative Rainfall Response Cover, a parametric insurance product designed to provide financial security for communities in Fiji during the rainy season. This groundbreaking cover promises rapid cash payouts to customers affected by heavy rainfall, cutting out the need for cumbersome damage assessments. The initiative aims to offer immediate financial relief to Fijians, particularly as they face the escalating challenges posed by climate change.
According to Ron Mudaliar, Tower’s chief underwriting officer, this product embodies their longstanding commitment to assisting Pacific communities. “For 151 years in the Pacific and 156 years in New Zealand, we have been devoted to helping people protect what matters most. Creating innovative parametric products is one way we are helping the Pacific Islands to be future-ready,” he stated. The Rainfall Response Cover will supplement the already established Cyclone Response Cover, enhancing accessibility to insurance for local communities and helping them recover more swiftly from rainfall-related damages.
This pilot program is set for the 2025-2026 wet season, supported by the United Nations Capital Development Fund (UNCDF) and the Pacific Insurance and Climate Adaptation Programme, in partnership with the Reserve Bank of Fiji (RBF) under their InsuResilience Solutions Fund (ISF) project. Beneficiaries, including participants from the Ministry of Women, Children and Social Protection programs and the Fiji Crop and Livestock Council, along with other Fijians, will gain access to this insurance. The RBF has welcomed this initiative as a vital contribution in expanding parametric microinsurance solutions across the nation.
Highlighting the importance of this product, RBF Deputy Governor Esala Masitabua emphasized, “Many Fijians are affected by heavy rainfall at different times of the year, making this product highly relevant and timely.” The aim is to ensure that communities prepare for and recover effectively from natural adversities.
The Rainfall Response Cover aligns with broader efforts in Fiji to create comprehensive climate risk insurance products, reflective of ongoing partnerships among the Reserve Bank, Tower Insurance, and other agencies designed to fortify financial resilience in vulnerable communities. With a history of making insurance accessible, these initiatives present a hopeful outlook for Fijians as they confront climate challenges, enabling families and communities to rebound more effectively from weather-related adversities.
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