Families get first-ever weather payout

Nearly 300 families on the Fijian island of Kadavu have received more than $27,000 in financial assistance, marking a significant milestone as the country's first payout under a new parametric insurance program. The funds were disbursed following heavy rainfall that triggered the payout.

“

The payout marks a major milestone for the company’s Rainfall Response Cover.

Tower Insurance successfully paid out $27,050 to 278 customers within three weeks of the severe weather event in late June. This rapid disbursement was possible because the parametric insurance program does not require traditional, time-consuming damage assessments. Affected families were able to access crucial support much faster than with conventional insurance claims.

Ron Mudaliar, Tower's Chief Underwriting Officer, stated that this payout represents a major achievement for the company's Rainfall Response Cover. He explained that the program automatically releases payments when rainfall reaches a predetermined threshold, thereby enabling communities to recover more quickly after extreme weather events.

“

He says the program automatically releases payments when rainfall reaches a set threshold, helping communities recover sooner after extreme weather.

The Kadavu payout has provided valuable insights and lessons as Tower Insurance prepares for the product's nationwide rollout in Fiji next month. The company aims to further expedite future payouts, targeting a seven-day turnaround after a qualifying weather event occurs. The rainfall insurance program was initially launched as a 12-month pilot in November last year. Its objectives were to enhance climate resilience and broaden insurance access for vulnerable communities.

“

The Kadavu payout has provided important lessons ahead of the product’s nationwide rollout in Fiji next month.

Supported by the Reserve Bank of Fiji and international partners, this initiative demonstrates how innovative insurance solutions can effectively assist families in preparing for and recovering from climate-related disasters. The program's success in Kadavu highlights its potential to provide much-needed financial stability in the face of increasingly frequent and severe weather.

“

Tower aims to reduce future payouts to within seven days after a qualifying weather event.