Climate-induced disasters are the number one cause of displacement within countries in the last decade. More than 20 million people are forced to leave their homes each year. Pacific Small Island Developing States (PSIDS) make up seven of the ten countries facing the highest risk of internal displacement from extreme weather events. In a region already exposed to a variety of geophysical and climate hazards, the increased severity of the disasters as a result of climate change in the South Pacific region have disrupted economic and social progress as well as development gains. Despite the high exposure to natural hazards, most people in this region do not have any form of insurance protection.
The Pacific Insurance and Climate Adaptation Programme aims to improve the financial preparedness and resilience of Pacific Islanders towards climate change and natural hazards through the development and implementation of market-based meso- and microinsurance schemes. The programme will offer an option for the national and sub-national governments to consider subscribing to a ‘macro to micro’ scheme, where a government level insurance policy pays out to individuals, to support the most vulnerable segments. Fiji, Vanuatu, Tonga, Samoa, and the Solomon Islands will be covered under the multi-year programme.
Women, youth, and Micro, Small and Medium Enterprises (MSMEs) who are disproportionately affected by natural hazards will be the target segments of the programme. Heavily reliant sectors – agriculture, fisheries, retail and tourism will also be of focus. As part of UNCDF’s global strategy, Leaving No One Behind in the Digital Era, the programme will be working with the Pacific Digital Economy Programme to create digital payment solutions to reach Pacific Islanders in rural and remote areas. The Programme will also work together with governments and relevant stakeholders to develop customized Climate and Disaster Risk Financing strategies.