In a partnership truly symbolising the ideals of South-South cooperation, The University of the South Pacific (USP), UN Capital Development Fund (UNCDF), The University of West Indies (UWI), and the UN University Institute for Environment and Human Security (UNU-EHS) have launched a joint research project to improve climate and disaster risk insurance products in the Pacific and Caribbean regions.

Based in the Caribbean, the UWI is one of only two regional universities in the world – with USP being the other -- and will be contributing to the design of field surveys and research articles.

UNCDF has formed a partnership with the two regional universities to work together on this fast-developing and important space that needs to be underpinned by sound, data-driven research going forward.

The research outcomes will inform UNCDF’s work in creating disaster risk financing products for disaster-prone countries and leverage digital technologies to increase access to these products.

The UNU-EHS will play a significant role in shaping the research agenda and providing technical expertise for the project, while leveraging their existing relationship with UWI through projects in the Caribbean.

“The coming together of two regional Universities-from the Caribbean and the Pacific- to work jointly with UNCDF on a research agenda focusing on Climate Disaster Risk Insurance is a classic example of how developing countries from the two regions can share knowledge, skills and expertise to address development challenges that are unique to their geographies” said Preeti Sinha, UNCDF Executive Secretary.

The project will be led by senior faculty from USP’s Pacific Centre for Environment and Sustainable Development (PaCE-SD), who, with support from Graduate students, will:

a) Carry out mixed methods research to support evidence based improvements or variations to the insurance product design; and
b) Publish policy briefs and academic articles based on the research

USP Deputy Vice-Chancellor and Vice-President (Regional Campuses and Global Engagement), Dr Giulio Masasso Tu’ikolongahau Pāunga said: “We are indeed excited to be collaborating with UNCDF together with, the UWI and UNU in what promises to be the start of a significant and mutually beneficial partnership.

“The results from this research will have regional and global applications which I am confident will reliably inform the development of climate and disaster risk insurance for many years to come.”

The field surveys will cover approximately 400 respondents from Cakaudrove and/or Macuata in Northern Fiji and is expected to be completed this month, with the analysis and initial findings expected by May 2022.

The main objectives of the research is to inform activities of the Pacific Insurance and Climate Adaptation Programme (PICAP) and shape future interventions in the following areas:

1. Product design/product variant research - To determine what product features and designs should be developed or improved to better meet the needs of the target groups.
2. Gender - To determine how the uptake of disaster risk finance (DRF) instruments among women can be increased through product design, outreach & education, distribution channels, marketing and so on.
3. Low-income groups – To determine how the uptake of DRF instruments among low-income groups can be increased through product design, outreach and education, distribution channels, marketing and so on.
4. Digital technologies – To determine how the usage of digital technologies for buying insurance products, collecting premiums, and making payments can be increased and maximised.

PICAP is jointly administered by UNCDF, UNU and the UN Development Programme.

The programme receives funding support from the governments of New Zealand and Australia, and Luxembourg’s Climate and Energy Fund. The Fiji component is additionally funded by the Indian Government through the India-UN Development Partnership Fund and the UN Office for South-South Cooperation under the project name, “Developing Climate Disaster Risk Financing Framework and Parametric Insurance.”

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 catalyse participation in the local economy, and provide tools to climb out of poverty and manage financial lives; (2) local transformative finance, which capacitates localities through fiscal decentralisation, 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 mobilisation.

About UNU-EHS
The UNU is the academic arm of the United Nations and acts as a global think tank. The mission of the UNU-EHS is to carry out cutting edge research on risks and adaptation related to environmental hazards and global change. The institute’s research promotes policies and programmes to reduce these risks, while considering the interplay between environmental and societal factors.

Research areas include climate change adaptation incorporating insurance-related approaches, environmentally induced migration and social vulnerability, ecosystem services and environmental deterioration processes, models and tools to analyse vulnerability and risks linked to natural hazards, with a focus on urban space and rural-urban interfaces. Research is always conducted with the underlying goal of connecting solutions to development pathways.

About USP
The University of the South Pacific (USP) is the premier institution of higher learning for the Pacific, uniquely placed in a region of extraordinary physical, social and economic diversity and challenges to serve the region’s need for high-quality tertiary education, research and policy. Apart from being a tertiary institution, it also serves as an organisation of regional cooperation and integration.

USP is jointly owned and governed by twelve (12) Member Countries: Cook Islands, Fiji, Kiribati, Marshall Islands, Nauru, Niue, Samoa, Solomon Islands, Tokelau, Tonga, Tuvalu and Vanuatu. The University has campuses in all Member Countries, with Fiji having three (3) Campuses. Despite its multi-campus nature, USP is a single university with several branches across the Pacific Region. It is a renowned international centre for teaching and research on Pacific culture and environment.

USP graduates gain knowledge and appreciation of the unity and diversity of Pacific island cultures; understanding of the diverse economies and environments of the Pacific Islands; and commitment to the maintenance and strengthening of the societies of the Pacific.