Prior to the launch of the parametric microinsurance product under the UN Capital Development Fund, the Tailevu Dairy Farmers Cooperative Association Limited (Cooperative) presented the initiative to its board of directors, leaders and representatives across the province.

The outcome was favourable as the leaders became the first beneficiaries to sign up for the micro-insurance product, setting an example for the rest if the dairy community. For the Cooperative, the message was clear: Insurance cover can be a financial lifeline in times of need or hardship. Natural disasters are real and it’s important to plan and prepare for these unpredictable situations.

This was the message that needed to reach the community through their leaders who had shown confidence in the product. Natural disasters wreak havoc, and besides leaving many unprepared families homeless and without an income, the widespread devastation can bring the economy to its knees. During times of disaster, farmers in agriculture and livestock are often left to pick up the pieces along a trail of destruction – damaged crops and farmhouses, loss of livestock, tools and planting materials. Being insured could at least provide some relief across the community.

For the Cooperative, the initiative to rollout the product among affiliates has raised its profile not just as a cooperative, but a UNCDF partner in the pilot microinsurance project.

Since the launch in August 2021, the Cooperative has embarked on an awareness and educational campaign about the product, noting that the agriculture sector in the Tailevu province played a vital role in the local economy. The Cooperative noted that some farmers had ventured into commercial farming, shifting their focus from selling produce and livestock at local markets, to catering for the export market.

The opportunities are plentiful in this sector and province, with a number of financial literacy workshops being organised to ensure business sustainability among farmers, women and youth.
“It’s important that we have this awareness on the parametric microinsurance product, not just financial literacy but the importance of preparing for disasters, and mitigating disaster risks,” stated Talei Rokotuibau, the Cooperative’s focal lead for the project.

The Cooperative has been continuously working alongside board members and stakeholders who signed on initially. With only one of two products on offer for the pilot phase, the Cooperative noted a keen interest from potential beneficiaries to invest in two microinsurance products after the pilot project is complete — a suggestion that the Cooperative plans to discuss with insurance companies.

From the outset, the Cooperative has embedded the benefits and risks of the product into its awareness programmes while on site visitations around the province. According to Ms Rokotuibau, the real test of the product’s strengths and weaknesses would arise out of an actual natural disaster, with cyclones usually hitting Fiji between November and April. “We have to brace ourselves for the disaster to be able to capture its impact, and use that as a real case study.

“At the moment, we are sharing just experiences of aggregators and it’s different from a real case of how this product would roll out (in the aftermath of an actual disaster). We hope there is no cyclone but it’s a waiting game to see the roll out of the insurance benefits when disaster strikes. Only then would we be able to give an overview of its strengths and weaknesses,” stated Ms Rokotuibau.

Utilising digital spaces and the media to create conversations and communicate the benefits of the products is an option the Cooperative is considering, given that many people have internet-enabled devices to access these online spaces to share information.

For the Cooperative, raising awareness through financial literacy initiatives among affiliates would also ensure product sustainability, noting that immediate assistance and relief for farmers in the aftermath of a natural disaster would make a huge difference in disaster recovery. The Cooperative also plans to work alongside the Ministry of Agriculture on how to best assist affiliates with parametric microinsurance coverage.

With COVID-19 movement restrictions slowly easing, the Cooperative will continue its outreach to other parts of the province to keep the conversation about insurance benefits alive. A positive outcome from its awareness initiatives so far is the interest shown from potential beneficiaries in villages that the team has not yet visited.

According to Ms Rokotuibau, a few members who were not part of their area had also signed up for the product after learning of the initiative through word-of-mouth. To ensure inclusivity, the Cooperative continues to encourage the participation of women, people living with disabilities, and small business entrepreneurs to join their awareness workshops and programmes.

The Cooperative also believes that financial literacy and insurance concepts should be ingrained in the school system from an early age as it would introduce the upcoming generation to the importance of saving, budgeting and investing in a secure future. The Cooperative noted that some members of the community were initially hesitant, but it hoped to change their mindset about microinsurance products, noting that people had a tendency to act on something once they’ve seen its benefits – ‘so na raica, so na kila (when they see, they will know).

Moving forward, the Cooperative hopes to contribute to the growing discussion around the importance of parametric microinsurance products as a means of financial security in the face of natural disasters. “We need to keep the discussion and benefits fresh in people’s minds rather than long pauses in between the project,” stated Ms Rokotuibau.

With regards to advocacy, Ms Rokotuibau recommends documenting disasters and impacts in words and pictures, in relation to the parametric system and how it works, as well as share stories from beneficiaries. She proposes including other product cover/packages for flood and rain because cyclone brings in multiplier effects. The Cooperative has also called for better data collection of weather aggregates in their province to keep communities informed about natural disasters.