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UNCDF, WFP Announce Partnership to Develop ‘First-of-its-kind’ Climate Risk Insurance for Social Welfare Recipients in high-risk areas in Fiji

SUVA, Fiji: The United Nations World Food Programme (WFP) and the UN Capital Development Fund (UNCDF) are partnering together with the Fiji Ministry of Women, Children and Poverty Alleviation to pilot the first parametric micro-insurance for select social welfare recipients located in high climate risk locations.

As of 1 November 2021, 325 social welfare recipients living in high disaster risk locations in Fiji will be included in a pilot climate risk insurance project that will run for 12 months. Climate risk insurance can help build the resilience of vulnerable populations facing increasing exposure to climate shocks, including through timely access to financial assistance. The partnership involves the Department of Social Welfare (DSW) within the Ministry of Women, Children and Poverty Alleviation and is a first-of-its-kind initiative in the Pacific region and potentially beyond.

“Developing climate and disaster risk insurance solutions for vulnerable segments is a priority for UNCDF, and our growing body of work in this area is anchored in the Pacific, but our ambitions are to expand it to other markets,” said Preeti Sinha, Executive Secretary of UNCDF.

“We see this strategic partnership with the World Food Programme as a model where the strengths and capacities of two UN agencies are combined to bring innovative solutions to governments to help them address development challenges for the most vulnerable.”

In addition to being some of the most vulnerable members of society, social welfare beneficiaries in Fiji also rely heavily on government support as they confront extreme weather events that are increasing in both intensity and frequency. While humanitarian response to these events can take several months, parametric insurance in the event of a cyclone can result in payments to those affected within 3-5 business days.

“WFP is excited about this innovative partnership and pilot that brings the first macro-micro climate risk insurance to some of the most vulnerable households in Fiji including people with disabilities and older persons,” said Jo Pilgrim, Director of WFP’s Pacific Multi-Country Office. ​“As climate change impacts are increasingly felt across the Pacific, it is those most vulnerable who bear the brunt of more intense extreme weather events. Through this pilot and partnerships including the Ministry of Women, Children and Poverty Alleviation and UNCDF, we are working together to strengthen vulnerable populations resilience ​and capacities to cope and recover from climate shocks.”

“In the Pacific, climate change is a real threat and combined with an extreme weather event like a cyclone, places our most vulnerable populations in harm’s way. When a disaster strikes, timely financial support is critical to enable those affected to meet their basic and essential needs immediately– and the sooner we can get that support to them, the quicker they can recover. The MWCPA welcomes this partnership with WFP and UNCDF to more effectively and efficiently support and protect the poor and the most vulnerable under the Ministry, being our social welfare recipients.” Permanent Secretary Ms. Jennifer Poole, Ministry of Women, Children and Poverty Alleviation.

The scheme comes into effect in time for the start of Fiji’s cyclone season which lasts until April each year. Two local insurance companies, FijiCare and Sun Insurance, are underwriting the risk with UNCDF providing the technical assistance in developing the product and WFP identifying the high-risk locations and covering the premiums.

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About UNCDF 

The UN Capital Development Fund makes public and private finance work for the poor in the world’s 46 least developed countries (LDCs).

UNCDF offers “last mile” finance models that unlock public and private resources, especially at the domestic level, to reduce poverty and support local economic development.

UNCDF’s financing models work through three channels: (1) inclusive digital economies, which connects individuals, households, and small businesses with financial eco-systems that catalyze participation in the local economy, and provide tools to climb out of poverty and manage financial lives; (2) local development finance, which capacitates localities through fiscal decentralization, innovative municipal finance, and structured project finance to drive local economic expansion and sustainable development; and (3) investment finance, which provides catalytic financial structuring, de-risking, and capital deployment to drive SDG impact and domestic resource mobilization.


About WFP


The United Nations World Food Programme is the 2020 Nobel Peace Prize Laureate. We are the world’s largest humanitarian organization, saving lives in emergencies and using food assistance to build a pathway to peace, stability and prosperity for people recovering from conflict, disasters and the impact of climate change.


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Fiji Partnerships


[Sheldon Chanel, Communications Officer at UNCDF Pacific];

Maria Shumusti, Communications Officer at WFP

Phone: +61 498 728 143