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Fiji launches first climate risk parametric insurance for MSMEs

From FBC News · () English

Summarized and contextualized by DistantNews.

At a glance

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  • Fiji has launched its first climate risk parametric insurance product for micro, small and medium enterprises (MSMEs).
  • The product, supported by the UNDP, ADB, and UNCDF, will issue payouts to businesses after climate-related disasters.
  • This launch is considered timely given the increasing frequency of such disasters.

Fiji has introduced its first climate risk parametric insurance specifically designed for micro, small, and medium enterprises (MSMEs). Tower Insurance officially launched the product, which is backed by the United Nations Development Programme (UNDP), the Asian Development Bank (ADB), and the UN Capital Development Fund (UNCDF).

The insurance is parametric, meaning it will automatically provide payouts to insured businesses following climate-related disasters. This mechanism aims to offer rapid financial support when it is most needed.

Ronald Mudalliar, Tower Insurance's Chief Underwriting Officer, stated that the timing of this launch is particularly relevant. He highlighted the growing impact of climate-related events on businesses in Fiji and the Pacific region. The product is intended to bolster the resilience of MSMEs, which are often the most vulnerable to such shocks.

launching this insurance product is timely for given that [...]

— Ronald MudalliarTower Insurance Chief Underwriting Officer Ronald Mudalliar on the importance of the new insurance product.
DistantNews Editorial

Originally published by FBC News. Summarized and contextualized by our editorial team with added local perspective. Read our editorial standards.

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