Media Release No: 03/2025
Date: 04 October 2025
Demand-Led Innovation in Climate Risk Finance: Pioneer Parametric Microinsurance Provider Launches Revised Products
Working to strengthen financial resilience for Fijians who are mostly affected by natural disasters and ensuring an inclusive climate risk protection, the SUN Insurance with the support of the Reserve Bank of Fiji (RBF), officially launched its revised parametric microinsurance products today, under the banner of the InsuResilience Solution Fund (ISF) Project. This launch marks the continued transformation in Fiji’s disaster risk financing landscape, one that is driven by community feedback and user informed needs.
The event brought together a diverse coalition of stakeholders including representatives from government, financial institutions, development partners and civil society, to celebrate the revamping of insurance solutions that are transparent, climate-responsive and socially inclusive.
SUN Insurance, one of the pioneer providers of parametric microinsurance in Fiji since 2021, reaffirmed its commitment to innovation and community resilience. The revised parametric microinsurance products are not just technical enhancements, they are a direct response to the voices of Fijians who face the brunt of climate-related disasters.
SUN Insurance board chairman, Mr Padam Lala in launching the products stated that “We envision a future where parametric insurance becomes a cornerstone of national disaster preparedness, where farmers, fishermen and families can face the future with confidence, not fear”.
Product Revisions Reflect Community Demand
The Weather Risk Modelling Services (WRMS) at the initiation of the ISF project partners, led a comprehensive review of SUN’s existing parametric insurance offerings. The result is a set of revised products that reflect both technical rigor and social responsiveness:
- Farmers Product: Strike level reduced to improve payout sensitivity, while maintaining the 10% premium rate.
- Pacific Disability Forum and Social Welfare Products: Merged into a single, streamlined product at a 10% premium rate.
These revisions were shaped through a consultative process involving aggregators and community stakeholders, with insights gathered from workshops and awareness sessions held in the first and second quarter of 2025. Mr Lala further added that “today we unveiled a revised suite of parametric insurance products that reflect months of learning, listening and innovation. These enhancements are designed to assist the most vulnerable”.
Strategic Alignment and National Impact
This initiative stems from one of the three key pillars of the RBF’s Strategic Plan 2024–2029, which promotes sustainability and inclusion. It is also strongly aligned to the National Financial Inclusion Strategy 2022–2030, reinforcing the importance of accessible, affordable, and well-designed financial services for all Fijians, especially the most vulnerable.
“The RBF is deeply committed to ensuring that the objectives of the ISF Project are fully realised. This initiative is not just about expanding coverage; it’s about making sure that parametric microinsurance reaches those who truly need it most.” Mr Ariff Ali, Governor, RBF.
Year 1 Achievements: A Strong Foundation for Scale
The ISF Project has made significant strides in its first year:
- Policyholders: Increased to 4,249 for the 2024–2025 period, up from 1,196 in the 2023-2024 period.
- Outreach: Over 10,258 Fijians were reached through community engagement, media campaigns and aggregator networks.
- Stakeholder Engagement: 29 workshops were conducted to foster meaningful dialogue between demand and supply-side actors.
- SUN’s rainfall cover was triggered in 2 separate events resulting in 1,233 policyholders including 60 persons with disabilities (PWDs) and 123 social welfare beneficiaries eligible for payout with over 85 percent paid out through mobile wallets.
The achievements of Year 1 have laid a strong foundation for scaling up climate risk insurance in the years ahead. The success has been made possible through deep collaboration and strong stakeholder engagement, which will remain central as the initiative moves into Year 2 with a target coverage of over 7,000 policyholders.
The ISF Project partners gratefully acknowledge the continued technical support of the UNCDF Pacific Insurance and Climate Adaptation Programme (PICAP), whose expertise has been instrumental in shaping and refining the insurance products since its launch in 2021. IT Galax and the Fiji Meteorology Services remain critical enablers of data-driven climate resilience, underpinning the parametric microinsurance ecosystem in Fiji.
Equally, the project recognises the critical contributions of demand-side aggregators, whose grassroots engagement and outreach have driven uptake and awareness. These include:
- Cane Farmers Cooperative Savings & Loans Association
- Sugar Cane Growers Council
- Pacific Disability Forum
- Fiji Crops and Livestock Council
- Nature’s Way Cooperative
Their efforts have been vital in ensuring that the products are accessible, relevant and responsive to the needs of diverse communities across Fiji. Together with the Fiji Meteorology Services who are the provider of vital on the ground weather data to enable the products to work effectively,
Collaboration with key government ministries has also opened new pathways to reach underserved populations. The Ministry of Women, Children and Social Protection, Ministry of Rural and Maritime Development and Disaster Management, the Ministry of iTaukei Affairs and the Ministry of Trade, Cooperatives, MSME and Communications have played a pivotal role in identifying and connecting with those most in need of climate risk protection.
The RBF extends its sincere appreciation to SUN and Tower Insurance for their leadership and commitment to maintaining the availability of parametric insurance in Fiji’s market. Their continued partnership ensures that innovative, inclusive, and sustainable financial protection remains within reach for Fiji’s most vulnerable communities.
For any further information, please contact: –
Mr Lepani Uluinaviti
Manager Project InsuResilience Solution Funds
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