Lloyd’s, UNCDF champion parametric insurance for climate-vulnerable regions

The partnership plans to replicate the model in other regions, including Asia.

Lloyd’s is collaborating with the United Nations Capital Development Fund (UNCDF) and the Sustainable Markets Initiative's Insurance Task Force to conduct parametric insurance training workshops in Papua New Guinea and Fiji.

These workshops aim to enhance local understanding and development of parametric insurance for regional insurers, reinsurers, and central banks in Pacific Island countries. 

“The training workshops serves 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.” said Governor Ariff Ali, Reserve Bank of Fiji in a press release.

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They are part of Lloyd’s and UNCDF’s joint objective to expand insurance access in climate-vulnerable nations, following a memorandum of understanding signed in September 2023.

Parametric insurance, when integrated into diverse insurance offerings, can aid in disaster risk reduction and support climate adaptation models and national Disaster Risk Facility strategies.

Initially focusing on Fiji and the Pacific Islands, the partnership plans to replicate the model in other regions, including Asia and parts of Africa.