Tower Insurance Ltd has announced the launch of its Cyclone Response Cover ahead of the upcoming cyclone season, offering peace of mind and financial security to Fijian communities.
The cover, still in the pilot phase, provides a cash pay-out when a customer is impacted by a high wind speed cyclone event, regardless of damage and without the need for an insurance assessor’s sign-off, within a timeframe of 7 days.
The pilot is first being trialled with families in Ketei Village on Totoya Island and Kavala Village on Kadavu for the 2022/2023 cyclone season, with ten individuals from these villages already having signed up for the policy.
The cover is launched in collaboration with the United Nations Capital Development Fund (UNCDF).
Tower’s head of Pacific digital distribution Veilawa Rereiwasaliwa said they were glad to be approached by UNCDF as the initiative aligns with one of their company objectives of bridging the gap between the insured and uninsured.
“Fiji is rated as a high-risk area for exposure to natural disasters and is number 15 on the Natural Hazards list in the 2017 World Risk Index report, but less than 10 per cent of families have insurance.”
At times, locals are left to rely on their savings, borrow money or seek cash elsewhere to start their recovery, or even feed their families during a cyclone crisis.
“Cyclone Response Cover will lessen the burden on local villages and their support networks, enabling them to recover from cyclone damage quickly,” said Mr Rereiwasaliwa.
For the pilot, Tower customers have a choice of three affordable product options, ranging from $1000 to $3000, based on the amount of cover they feel they need to fast-track their recovery after a cyclone event.
The price of each policy is based on the level of cover and customer location.
Signing up for the policy can be done online, making the process more accessible for those who cannot visit Tower locations in person.
UNCDF programme manager for the UN’s Pacific Insurance and Climate Adaptation Programme Krishnan Narasimhan said this partnership was firmly grounded on a common objective of improving the financial resilience and preparedness of Pacific islanders against the impacts of climate change and natural hazards.
“After an initial pilot and testing in Fiji, the plan is to expand to Tonga, Vanuatu and other Pacific countries.”
