In a bid to strengthen disaster preparedness and recovery in vulnerable communities, a parametric insurance initiative is now benefitting over 12,000 Fijians through cooperatives and agri-pharma agencies with established governance systems.
This was confirmed by Coordinator for the Pacific Inclusive Insurance Solutions Hub, Akata Taito during International Day for Disaster Risk Reduction (IDDRR) this week, who says the model ensures that financial assistance reaches affected communities within days of a disaster.
Taito says the parametric insurance product operates at the meso level, meaning payouts are made to intermediary organisations such as cooperatives or aggregator agencies, which then disburse the funds to their members.
She says cooperatives and agencies already have internal resources that can be deployed immediately after a triggering event, based on early notification from the insurance provider, and these funds can be used to support members before the official payout is processed.
While the insurance premiums are subsidised, Taito says work is being done to help agencies eventually cover these costs themselves, with discussions also underway with government to support the most vulnerable.
