Samoa launches its first ever Parametric Micro-insurance


The Samoa Government continues its efforts to assist in what is crucial for building disaster resilience and preparedness for the Samoan people against climate hazards, which are becoming increasingly frequent and severe.

Minister of Fisheries and Agriculture Laauli Leuatea Schmidt at the launching of the Parametric Microinsurance Product Samoa, acknowledged the assistance of Samoa Surety Insurance Ltd and the UN Capital Development Fund-led Pacific Insurance and Climate Adaptation Programme (PICAP) for developing and introducing to Samoa a financial instrument that is vital in the Country.

He said over the last two years, PICAP has introduced parametric insurance products and innovations, and they have mobilised the private sector in Fiji, Tonga, Vanuatu and now Samoa’s insurance industry to develop the market.

This product fills a market gap, as for the first time in the history of Samoa’s insurance industry, a parametric micro-insurance product that guards against climate hazards is now available for purchase.

Noting that MAF had consultative meetings with the PICAP team and Samoa Surety, and they are confident that this product is going to be a key tool in the basket of targeted financial solutions Samoa is providing to reduce the impact of extreme weather events on our most vulnerable communities.

Also, MAF is committed to ensuring the Samoa citizens, especially the underserved adult populations, farmers and fishers, have access to appropriate financial services.

The Minister applauded the Programme’s underwriting insurance partners, Samoa Surety Insurance Limited, on their goal to sign up 200 beneficiaries before the start of Samoa’s cyclone season in November. The six months between November and April is an anxious time for everyone in the country.

Cyclonic winds have devasted people’s homes and investments and upended entire livelihoods. Innovative instruments like parametric insurance can provide people with a means to cope better with these impacts. The injection of funds to cater to immediate needs like food, water, home repairs, and will also create more resilient communities.

According to the Minister, they are closer to achieving their overall goal by piloting the parametric microinsurance product, a climate disaster risk financing instrument.