Launch of Fiji’s first MSME Parametric insurance product
Tower Insurance has officially launched Fiji’s first climate risk parametric insurance product for micro, small and medium enterprises (MSMEs),
The insurance product, supported by the UNDP, ADB and UNCDF, will provide payouts to insured businesses following climate-related disasters.
Towers Insurance Chief Underwriting Officer Ronald Mudalliar says launching this insurance product is timely for given that MSMEs make up to nearly 80 percent of businesses in Fiji.
“We’re beginning to learn about how supporting MSMEs create jobs, support families and help communities thrive. Yet they are often among the most exposed.”
Minister for Finance Esrom Immanuel says the insurance product gives MSMEs the confidence to grow.
“It is about giving our entrepreneurs a stronger system. In times of uncertainty, they can recover, they can renew, and continue contributing.”
Immanuel says the product is an innovative solution for the realities of climate change.
“Unlike traditional insurance parametric insurance provides automatic payouts allowing businesses to pay new equipment and retain employees.”
The launch marks a greater step Fiji’s efforts to develop innovative financial solutions that will develop climate resilient small businesses.
