FIJI has launched a new parametric insurance product to help micro, small and medium enterprises recover faster from climate-related disasters.
Officials say this is a major step towards strengthening financial resilience across the business sector.
The product, developed by Tower Insurance with support from the Reserve Bank of Fiji, UNCDF, UNDP and the Asian Development Bank, is designed to provide quick payouts when agreed weather triggers, such as excessive rainfall or cyclone wind speeds, are reached.
Unlike with traditional insurance, businesses do not need to undergo lengthy loss assessments before receiving support.
Speaking at the launch, Fiji’s Minister for Finance Esrom Immanuel said the initiative marked a shift from reacting to disasters after they occur to preparing businesses before they strike.
“This initiative is a significant step forward towards building a stronger, more resilient and inclusive economy for all our entrepreneurs,” he said.
Immanuel said cyclones and floods cost Fiji more than $USD500 million annually, equivalent to around $FJD1.1 billion or more than five per cent of GDP.
He said rapid insurance payouts could help market vendors, farmers, fishers, tourism operators and other small businesses repair premises, replace stock and restart operations without relying solely on savings, loans or government assistance.
Tower Insurance said its parametric products were already demonstrating practical impact.
The company confirmed it had made its first rainfall response payout earlier this month, providing more than $FJD27,000 to 278 customers in Kadavu following heavy rainfall in late June.
Customers did not need to lodge claims or wait for assessors; payments were made once rainfall thresholds were met.
Reserve Bank of Fiji Governor Ariff Ali said the launch was timely, noting that only about 14 per cent of Fijians have some form of insurance, with women less likely than men to hold policies.
“When we strengthen MSMEs, we strengthen the base of Fiji’s economy,” Ali said.
Ali said parametric insurance offered a simple, transparent and rapid mechanism to support households and businesses after disasters.
Partners said the wider rollout would help expand access to insurance and support a more resilient, future-ready Fiji.
