The Asian Development Bank (ADB), the United Nations Capital Development Fund (UNCDF), and the UN Development Programme (UNDP) have partnered to develop parametric insurance solutions for extreme weather for micro, small, and medium-sized enterprises (MSMEs) in Fiji.
The Asia-Pacific Climate Finance Fund (ACliFF), a multi-donor trust fund established in April 2017, will support the initiative through $950,000 in technical assistance. It will research the insurance landscape for small businesses in Fiji and work with local insurance providers to develop and test pilot products.
The initiative builds on the work of the Pacific Insurance and Climate Adaptation Programme (PICAP), which provides parametric insurance to vulnerable communities in the Pacific.
Fijian MSMEs account for over 80% of business composition and employ more than a quarter of the workforce, according to the Fiji Bureau of Statistics.
The sector remains highly vulnerable to extreme weather, with limited access to tailored insurance solutions that can support recovery and build resilience.
ADB’s Country Partnership Strategy 2024-2028 for Fiji supports the country’s resilience to economic and climate-related shocks, and aligns with the objectives of PICAP to build the financial preparedness of low-income households against natural hazards.
PICAP is jointly implemented by UNCDF, UNDP, and the UN University’s Institute for Environment and Human Security.
Aaron Batten, Pacific Subregional Office Regional Director, ADB, commented, “With small businesses making up such a significant proportion of the Fijian economy and workforce, it is essential to protect this sector. This initiative will help lay the foundation for a domestic insurance market specifically designed to meet the needs of these businesses and support climate resilience across critical sectors of the Fijian economy.”
Pradeep Kurukulasuriya, Executive Secretary, UNCDF, added, “This innovative approach empowers MSMEs in the world’s toughest economies to flourish, strengthen resilience, and foster sustainable development that uplifts communities and leaves no one behind.”
Munkhtuya Altangerel, Resident Representative for the Pacific Office in Fiji, UNDP, stated, “UNDP is proud to partner in strengthening the resilience of MSMEs. This initiative supports our broader efforts across the Pacific to promote risk-informed development, harness digital innovation, and accelerate progress.”
