Program shows impressive results
THE Pacific Insurance and Climate Adaptation Programme (PICAP) has shown impressive results in 2021.
During the launch of PICAP’s Gender Equality and Social Inclusion Strategy and other projects on Friday May 6, UNDP Regional technical specialist Insurance and Climate Adaptation, Praneel Pritesh, said for the first time in the Pacific there was a climate disaster risk insurance which was available in Fiji, offered by two local private sector insurers — Fiji Care and Sun Insurance.
“Normally, Fiji Care and Sun Insurance are two of the fiercest competitors in Fiji’s growing insurance sector,” he said.
“That PICAP managed to bring the two of them together in a partnership for the common good is an exemplary achievement that ought to be replicated across the development sector.
“The private sector is an important ally in the global agenda for sustainable development.”
He said while still in its pilot phase, the program had amply demonstrated that through building partnerships, deploying appropriate tools and instruments like UNCDF performance grants, and providing technical advice and capacity building support, market players could be catalyzed into action to deliver solutions which address persistent development challenges.
“I need not reiterate the negative impacts of climate change and natural hazards and the economic impact on low-income Pacific islanders.
“But it’s important to mention that these impact disproportionately affect women, the disadvantaged and the marginalized population, given the Pacific’s fragile infrastructure, limited availability of coping resources, and social and cultural norms.
“These groups typically face financial barriers in terms of accessibility to insurance products and other forms of formal financial support necessary for economic recovery.”
Mr Pritesh said they were forced into taking potentially debilitating financial risks — such as borrowing from loan sharks at exorbitant interest rates — just to recover from a cyclone.
“The work that PICAP has started in Fiji in developing and deploying inclusive and equal risk transfer solutions like parametric microinsurance offers a ray of hope, to extend the protection to women and vulnerable communities, build financial resilience and assist in faster recovery after a catastrophic event.
“The program is also a testimony to how different UN agencies, in this case, UNDP, UN university and UNCDF can come together, leverage each other’s strengths and contribute to progress in achieving national and regional development plans.”