The Reserve Bank of Fiji (RBF) is pioneering a parametric microinsurance initiative, designed to help vulnerable populations recover quickly from the impact of climate shocks. 

Launched as a pilot in 2019, the project has already exceeded expectations, enrolling more than 4,000 policyholders — double the initial target.  

“The first step is always to listen,” says Caroline Waqabaca, RBF Chief Manager of Financial System Development. “The product must be relevant to farmers and fishermen on the ground. That means understanding their risks, and tailoring solutions to their needs.” 

The project is supported by the InsuResilience Solutions Fund and UNCDF, who provide technical expertise and grants to ensure products are viable for insurers, while remaining affordable for vulnerable communities.  

RBF provides subsidies that boost confidence and encourage buy-in from both providers and clients. 

A key part of the initiative is community outreach and education.  

“We need to keep things simple,” Mrs. Waqabaca notes. “We explain the product in a language that our target group can really understand. More broadly, there’s a need to educate communities about the value of insurance itself — so they can see the benefits and take ownership in protecting themselves from cyclones, heavy rainfall, and other risks.” 

During the first phase of the project, payouts totaled more than $107,000 to around 1,000 policyholders. With nearly four times as many people now covered, the impact is set to expand dramatically. 

“This is a very exciting time for us,” says Mrs. Waqabaca. “The positive results we’ve seen so far have strengthened our resolve to do even more.”