A collaboration between two organizations is expected to help micro, small and medium-sized enterprises (MSMEs) improve their understanding of climate and disaster risk financing in the region and, in doing so, promote parametric insurance in Fiji, Tonga and Tonga. Vanuatu.
The United Nations Capital Development Fund (UNCDF) and the Pacific Horticulture and Agriculture Market Access Program (PHAMA Plus) will forge closer ties to also increase access and use of finance and insurance Against Climate Disaster Risks (CDRFI) for MSMEs.
UNCDF Program Director Krishnan Narasimhan said the Pacific Climate Insurance and Adaptation Program (PICAP) pioneered the introduction of the region’s first parametric microinsurance product. , launched on August 25, 2021, currently covering over 1,300 households in Fiji under a pilot project.
“The product provides protection against cyclones and will provide total insurance coverage of F$1,000, target beneficiaries include smallholder farmers, fishermen, market vendors and small business owners.
“We are delighted to partner with PHAMA Plus to collaborate in the development of climate catastrophe risk insurance products suitable for MSMEs in Fiji who are vulnerable to natural hazards and currently lack risk transfer solutions.”
A joint statement from the two organizations said yesterday that one of the main objectives of the collaboration would be to interview both owners and employees of MSMEs to gain a more comprehensive understanding of the climate risks that affect them the most, adding that the findings would inform UNCDF. Pacific Climate Insurance and Adaptation Program (PICAP) activities in the region, with MSMEs being a key target segment given the critical role they play in regional economies.
PHAMA Plus national facilitator, Fiji Navitalai Tuivuniwai, said he welcomed the collaboration which will bring new microinsurance products based on a climate index and cover income loss for households and businesses in smallholder farmers after cyclones and adverse weather conditions.
In a region prone to cyclones, droughts, floods and volcanic activity, these instruments can be crucial for individuals, communities, the private sector and governments to deal with the financial impacts of natural disasters.