The Pacific Insurance and Climate Adaptation Programme (PICAP) has set out plans to expand beyond its initial pilot in Fiji to protect vulnerable communities in other island states in the region.
PICAP’s first pilot scheme saw the provision of weather index-based parametric microinsurance providing cover against tropical cyclones and floods in Fiji.
The pilot initially targeted 500 farmers, fisherfolk and market vendors, with plans to scale up the project in the near term.
FijiCare and Sun Insurance are the two private insurers underwriting the product, with policies delivered through digital payment platforms.
PICAP is jointly administered by the UN Capital Development Fund (UNCDF), UN Development Programme and the UN University’s Institute for Environment and Human Security.
Recent UNCDF reports have highlighted the need for climate and disaster risk insurance in several vulnerable countries in the region, including Samoa, Solomon Islands, Papua New Guinea, Tonga and Vanuatu.
Fiji also made the parametric product free of VAT in order to lower its price.
This followed a recommendation by the V20-led Sustainable Insurance Facility for governments to take such steps in order to encourage take-up of insurance products.