As the cyclone season gets underway in the South Pacific, it's hoped a new type of insurance on offer could help ease the burden of a storm's aftermath for those on lower-incomes.
Two pilot programmes in Fiji have been trialling parametric insurance - or index insurance - which offers cover against heavy wind and rain events, when those events meet a pre-determined threshold. Instead of waiting for an assessment like traditional insurance, a cash payout can be made within a matter of days.
The pilot programmes were initiated by the UN Capital Development Fund and are now ready to scale up in Fiji for this cyclone season, with similar pilots launching in Tonga and Vanuatu.
The UNCDF has also partnered with Tower Insurance, which is the first New Zealand insurer to offer parametric insurance in Fiji.
UNCDF programme manager Krishnan Narasimhan tells Kathryn about how parametric insurance works and why it's helping to cover previously uninsured communities, and Tower's chief underwriting officer Ron outlines the pilot the company's launching with 10 families in Fijian fishing villages.
Koro Island, Fiji, after Tropical Cyclone Winston in 2016. Photo: UNOCHA
