Approximately 700 sugarcane farmers in Fiji’s Western Division have registered for a parametric insurance scheme designed to enhance their financial security against climate-related challenges, as announced by the Sugar Cane Growers Council. This initiative marks a significant step as awareness about the necessity of such insurance grows among farmers reliant on weather conditions for their livelihoods.
The insurance, provided by Sun Insurance and TOWER Insurance, operates under the InsuResilience Solutions Fund Platform, with support from the Reserve Bank of Fiji. It offers growers coverage options ranging from $1,000 to $2,000, with half of the premium costs subsidized, making it more accessible to the farming community.
Efforts to register farmers in the Northern Division are also underway, with a joint awareness program aimed at further encouraging participation scheduled for this Friday. Chief Executive Officer Vimal Dutt emphasized the critical support that parametric insurance provides during challenging times, even if it is a micro-level solution. He highlighted that even minor financial relief can significantly impact families facing hardships and suggested making this insurance compulsory for cane growers.
Currently, the sugar industry lacks a dedicated crop insurance program, positioning parametric insurance as a vital stopgap measure to offer basic financial protection during climate-related occurrences, such as severe rainfall or cyclones. Although membership in the scheme is voluntary, the Council noted that growers’ confidence in the insurance has risen, thanks to timely payouts during adverse weather.
The parametric insurance scheme has been operational for four years and has seen consistent annual growth in farmer participation, as they increasingly understand its value as an essential tool for risk management and resilience in the face of climatic uncertainties. As awareness continues to spread, it is hoped that more growers will take advantage of this initiative, bolstering the resilience of Fiji’s sugar industry against climate impacts.