Lloyd's expands insurance access for climate-vulnerable communities

Lloyd’s is running parametric insurance training workshops in Papua New Guinea and Fiji, in partnership with the United Nations Capital Development Fund (UNCDF) and the Sustainable Markets Initiative’s Insurance Task Force. The two training sessions are part of the organizations’ efforts to strengthen insurance access in communities vulnerable to climate risks.

“We are delighted to be able to progress our Memorandum of Understanding with the UNCDF through our workshops in both Papua New Guinea and Fiji. Parametric insurance can play a vital role to support sovereign states with the financial impact of climate disasters, unlocking funds at speed and redirecting them into resilience strategies,” said Rebekah Clement, corporate affairs director at Lloyd’s, in a news release statement.

Dirk Wagener, resident coordinator for the UN in Fiji, Tonga, Solomon Islands, Tonga, Tuvalu and Vanuatu said in a statement, “Fiji is a global success story when it comes to parametric insurance and the country has made steady strides since the first product that provided cover against tropical cyclones was launched for smallholder farmers, fishers, and market vendors in 2021.”

Wagener described the workshop in Fiji and Papua New Guinea as two days of learning and networking, and that the training sessions will strengthen efforts to build climate resilience. 

“Some key topics to be covered include introduction to in-country risks and their insurability, weather and crop yield index insurance, pricing, distribution, operations, and policy,” stated Wagener.

Governor Ariff Ali of the Reserve Bank of Fiji, said in the news release, “The training workshops serve to build capacity within the local industry that will undoubtedly improve service delivery and foster greater access to parametric products. It will greatly enhance the understanding and knowledge of parametric insurance for climate-vulnerable countries in the Pacific, as a viable option to pursue especially with the excellent track record of communities getting quick payouts.”