UNRC Remarks for India UN Partnership Fund: Scaling Climate Disaster Risk Financing Framework and Parametric Insurance in Fiji

Bula Vinaka, Namaste and Good Morning, 

On behalf of the United Nations in the Pacific, I warmly welcome you all.  

Today, we celebrate the strides we have made towards strengthening Fiji’s resilience against the growing threats of climate change and natural disasters.  

In doing so, we also launch the commitment to ‘Scaling Climate and Disaster Risk Financing Framework and Parametric Insurance’ initiatives in the country.  

It is through your support, partnership, and collaboration that this UNCDF project has come this far. 

Allow me to thank the Government of Fiji for their steadfast support, exemplified in their continued policy to allow a VAT exemption on premiums of all climate and disaster risk parametric insurance products and in their commitment to extending the benefits of this crucial initiative to their social welfare recipients.  

Your dedication ensures that the most vulnerable members of this country are not only protected but empowered. It demonstrates a real commitment to the well-being of every Fijian citizen. Thank you for your unwavering partnership in creating a safer, more resilient future for Fijians. 

I thank the Government of India, for their commitment and investment in long-term improvement of the lives of the Fijian people through substantial funding support under the India-UN Development Partnership Fund and UN Office for South-South Cooperation. Their contribution has made the successes and expansion of this project - possible. To the Government of India, ‘dhanyavaad’ [dahn-ya-vard] for your additional investment in this 18-month scaling project, which will empower the most vulnerable Fijians in the face of the most pressing issue in the region - climate change and increasingly frequent and severe natural disasters. 

To provide some context, this initiative is not a solitary endeavor; it is a continuation of the 'Climate Disaster Risk Financing Framework and Parametric Insurance, ’ Project which began in 2020' - drawing on the valuable lessons learned and building on early successes.  Led by the UNCDF and implemented jointly with the Fijian Government, the pilot project laid the foundation for what we are celebrating today.  

Through innovative financing options, public and private stakeholder engagement, and digital linkages, the pilot phase equipped thousands of Fijians with tailored Climate Disaster Risk Financing Instruments including the first parametric micro-insurance product to exist in the Pacific region.  

These instruments, especially benefiting low-to-moderate income households, medium and small enterprises, farmers, women, youth, and persons with disabilities, have been vital in building financial resilience and aiding recovery from extreme climate shocks. 

The numbers speak volumes: 14,000 individuals and 2,000 social welfare recipient households covered under the parametric microinsurance scheme. Out of those covered, over 1,000 beneficiaries received a payout following a spell of excess rainfall from December 2022 to February 2023. Nearly half of beneficiaries being women and over 200 persons with disabilities.  

This inclusivity underscores our commitment to leaving no one behind, even in the face of adversity.  

I am delighted that with the additional support from the Government of India we can build on these existing successes and aim to improve the parametric microinsurance product and scale the solution to reach a larger section of vulnerable segments in Fiji. 

The scale up of this project couldn’t be timelier. The National Institute of Water and Atmospheric Research of New Zealand recently forecasted that 9 to 14 cyclones are to be expected in the Pacific Region this cyclone season and Fiji is expected to see 3 to 7 of them. Not only are they more frequent but they’re expected to be stronger and the impacts more severe. 

This underscores the need for such financial products to exist in the Fiji market. Through the pilot phase of the project, we have developed financial tools that are now accessible in the market to protect Fijians against such adversities during this cyclone season.  

The project's expansion phase, with UNCDF’s expertise and the focus on South-South cooperation, will allow us to tap into the wealth of knowledge and experience in digital finance, market ecosystem development, parametric insurance product development and de-risking instruments.  

This partnership will enable us to introduce improved solutions that are more relevant, accessible, and sustainable for more vulnerable segments of Fiji’s society. 

This project is not merely about mitigating financial losses; but more importantly it's about preserving livelihoods, ensuring children stay in school, and safeguarding the well-being of our communities.  

Friends, ladies, and gentlemen,  

The UN emphasizes the need for a Pacific region whose people and communities are more resilient to the ‘impacts of climate change, climate variability and disasters.’ This is a strategic priority for us, and we are firm and resolute in our commitment to making this a reality.  

Accordingly, UNCDF’s work in this project to scaling the developing accessible, affordable, and practical climate insurance solutions underlines this objective.  

Once again, I acknowledge and applaud all stakeholders involved: 

• The Fijian Government, in particular the Ministry of Finance, Strategic Planning, National Development, and Statistics for your support. 

• The Reserve Bank of Fiji for their partnership and support to enable a conducive environment for such financial innovations to be introduced. 

• The Government of India for their ongoing support of this initiative. We will count on your support as we continue to implement in Fiji. 

• Sun Insurance, FijiCare and Tower Insurance for being private sector allies in our work towards achieving the SDGs. 

• Digicel and Vodafone for allowing us to leverage off their mobile money digital solutions to make these crucial payouts. 

Vinaka Vakalevu, Dhanyavaad [dahn-ya-vard]. ,  

…Thank you!