Titilia Rokoiro and Monika Seicakau are two smallholder farmers living in Fiji’s flood-prone Western Division who have had their fair share of troubles from the vagaries of the weather.

Floods and cyclones have damaged income-generating assets and property with some regularity over the years, and the need for a financial solution to help them cope with the impacts was urgent.

The two women then learned about a novel parametric micro-insurance scheme from the news media that paid out funds based on ‘trigger’ events such as tropical cyclones and excessive rainfall.

They immediately signed up for the rainfall cover through the Cane Farmers’ Co-Operatives Savings and Loans Association Limited (CCSLA) and received a payout in February this year following excessive rain over a five-day period in late January.

“I have invested in this [microinsurance scheme] and I feel that it has helped my family a lot. If a cyclone or flood occurs, I receive a [financial] top-up,” said Ms Seicakau.

At the 28th Conference of the Parties to the UN Framework Convention on Climate Change (COP28), which was held in the United Arab Emirates from November to December 2023, Pacific nations have called for “more action, more ambition and more urgency” to tackle the climate crisis.

These demands include calls for more investments in climate adaptation solutions, such as parametric insurance, that help the most vulnerable cope better with the impacts of natural shocks.

Climate risk insurance is increasingly being seen as a tool to strengthen the financial resilience and preparedness of climate-vulnerable individuals and households against extreme weather events.

Developed by the UN Capital Development Fund’s (UNCDF) Pacific Insurance and Climate Adaptation Programme (PICAP), and offered in the market by local insurers, the product’s introduction means that many in region can for the first time access affordable insurance protection against weather hazards.

Gender equality and social inclusion is at the centre of the Programme’s work, in recognition of the disproportionate burden women bear during climate-related disasters.

In January and February 2023, the excessive rainfall over a five-day period in Fiji’s western division triggered payouts to 1,013 insured beneficiaries, with 38% of them being women and 20.2%people with disabilities.

For Ms Rokoiro and Ms Seicakau, the quick injection of funds was a “lifeline” in a most difficult time, assisting with recovery and placing them on better footing to deal with future climate shocks.

The key features of the product include the quick processing of the payouts sent directly through e-channels such as mobile money to the policyholder, with no need to verify the losses. Policy holders qualify for payments of up to $FJ1000, with the premium capped at 10% per annum.

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