A new initiative is set to reshape how small businesses in Fiji prepare for climate risks. The Asian Development Bank (ADB), in collaboration with the United Nations Capital Development Fund (UNCDF) and UN Development Programme (UNDP), has launched a pioneering effort to build a domestic insurance market tailored for micro, small, and medium-sized enterprises (MSMEs).
Backed by nearly $1 million in technical support from the Asia-Pacific Climate Finance Fund, the program will explore innovative insurance models—particularly parametric insurance, which offers rapid payouts based on weather triggers like wind speed or rainfall. This approach aims to help businesses recover faster from cyclones, floods, and other climate-related disruptions.
With MSMEs making up over 80% of Fiji’s business landscape, the initiative is expected to strengthen economic resilience and reduce vulnerability across key sectors. Local insurers will be engaged to co-develop and test pilot products, laying the groundwork for a scalable solution across the Pacific.
The project builds on the success of the Pacific Insurance and Climate Adaptation Programme and aligns with Fiji’s broader strategy to safeguard livelihoods and promote sustainable growth in the face of intensifying climate threats.
Source: Asia Development Bank