Fiji has launched its first climate risk insurance product designed specifically for micro, small and medium enterprises (MSMEs), offering businesses rapid financial assistance after cyclones and floods through automatic payouts triggered by predefined weather conditions.
The product, unveiled by Minister for Commerce and Business Development Esrom Immanuel, uses parametric insurance, which differs from conventional insurance by releasing payments once agreed triggers—such as cyclone wind speeds or excessive rainfall—are met, eliminating the need for lengthy damage assessments.
The initiative aims to help affected businesses quickly replace inventory, repair damaged premises, retain employees and resume operations following extreme weather events.
The launch comes as climate-related disasters continue to impose heavy economic losses on Fiji. According to estimates by the Reserve Bank of Fiji, cyclones and floods cost the country more than US$500 million (about FJ$1.1 billion) annually, equivalent to more than 5 percent of gross domestic product.
MSMEs account for more than 80 percent of Fiji's registered businesses, yet many remain financially vulnerable. Studies presented during the launch showed that nearly 80 percent of MSMEs are affected by natural disasters each year, while many lack adequate insurance coverage.
"When MSMEs thrive, Fiji thrives; when they are vulnerable, our economy is vulnerable," Immanuel said.
"This product gives our entrepreneurs assurance that they can recover, rebuild and continue supporting their families, employees and communities."
The insurance product was developed following consultations with more than 850 MSMEs and through collaboration among the Fiji government, the Reserve Bank of Fiji, the United Nations Capital Development Fund (UNCDF), the United Nations Development Programme (UNDP), Tower Insurance and other partners.
The initiative forms part of the government's broader MSME development strategy, which includes more than FJ$140 million in planned investments during the new financial year for financial assistance, advisory services, financial literacy and entrepreneurship training.
The government said it will continue working with insurers and development partners to expand awareness and access to the insurance product, particularly among businesses in rural and maritime communities.
Officials said the scheme is expected to strengthen climate resilience by enabling faster business recovery, protecting livelihoods and preserving jobs across Fiji.
