Cyclone Risk Insurance Product For Farming Co-Operatives
With the cyclone season around the corner, local communities can now better respond to and recover from tropical cyclones with the Pacific’s first Anticipatory Action Pilot Insurance Scheme.
The product was launched by the United Nations Capital Development Fund (UNCDF) in collaboration with the United Nations Office for Disaster Risk Reduction (UNDRR) and Sun Insurance in Suva yesterday.
It is a proactive measure to equip people through three local farming co-operatives with the financial means to effectively prepare for and recover from cyclone damage.
Payments for this insurance cover are given in anticipation of cyclone risk events based on key parameters, including wind speed and weather forecasts.
Head of Pacific Subregional Office, UNDRR Gabrielle Emery said this new anticipatory insurance product would give the co-operatives involved – Cane Farmers’ Co-operative Savings and Loans Association; Fiji Rice; and Tailevu Dairy Farmers Co-operative Association – the opportunity to protect farmers and their livelihoods against cyclone-related events.
“In developing this insurance product, we engaged with three farming co-operatives to figure out how they could most effectively use these funds to mitigate disaster risk before the cyclone hits,” she said.
“And they came up with lots of really interesting actions that they could be doing, such as actions they might take to secure properties and their crops, move livestock out of harm, and provisions for transportation to evacuation centres.
“So, through timely early warning and rapid dispersal of anticipatory financing, such as through this new product, we are really confident that these co-operatives will be able to better mobilise resources and take preventive action before disaster hits.”
As the insurance provider of this pilot product, Sun Insurance principal officer Tarlochan Singh shared his optimism for the scheme.
“We are proud to be the first insurer in the Pacific to launch this product with the assistance of the UNCDF and UNDRR,” he said.
“This product is a game-changer. It will help us navigate in advance, disasters and our upcoming cyclone season.”
Feedback: jernese.macanawai@fijisun.com.fj
