In Fiji’s Western Division, around 700 sugarcane farmers have signed up for a new parametric insurance scheme, aimed at providing enhanced financial security in light of climate challenges. This initiative, announced by the Sugar Cane Growers Council, reflects an increasing awareness among farmers of the need for such protections, given their dependence on weather conditions for their livelihoods.
The insurance is offered by Sun Insurance and TOWER Insurance, operating under the InsuResilience Solutions Fund Platform with backing from the Reserve Bank of Fiji. Coverage options for farmers range from $1,000 to $2,000, with half of the premium costs subsidized to make it more accessible to those in the farming community.
Registration efforts are also expanding to the Northern Division, with a joint awareness program to promote participation set for this Friday. Vimal Dutt, CEO of the Sugar Cane Growers Council, highlighted the importance of parametric insurance as a form of support during difficult times, noting that even a modest financial aid can have a substantial impact on families in hardship. Dutt has proposed making this insurance mandatory for cane growers to ensure more comprehensive coverage.
Presently, the sugar industry in Fiji lacks a dedicated crop insurance program, which positions parametric insurance as an essential short-term solution to provide basic financial protection against climate-related events like heavy rain or cyclones. Though participation is voluntary, confidence in the scheme has grown significantly among growers, aided by timely payouts during adverse weather conditions.
Having been in operation for four years, the parametric insurance scheme has experienced consistent annual growth in participation from farmers, who are recognizing its value as a critical tool for managing risk and building resilience against climatic uncertainties. With continued efforts to raise awareness, there is optimism that more growers will embrace this initiative, ultimately strengthening the resilience of Fiji’s sugar industry in the face of climate impacts.