Govt Expands Partnership with RBF to Boost Financial Protection for Rural Communities

The Ministry of Rural and Maritime Development and Disaster Management has deepened its partnership with the Reserve Bank of Fiji (RBF) through the signing of an addendum to their existing Memorandum of Understanding (MoU), with a renewed focus on strengthening the financial resilience of rural communities.

The agreement, signed yesterday (28 July), will now formally incorporate support for parametric insurance—an innovative financial tool designed to provide rapid payouts to families affected by climate-related disasters such as cyclones, droughts, and floods.

Permanent Secretary Isoa Talemaibua said the move marked a significant step forward in empowering vulnerable communities with better safety nets in times of crisis.

“This addendum represents an important milestone in our existing collaboration with the Reserve Bank of Fiji. It formalises our shared commitment to empowering rural communities with tools that not only protect livelihoods but also enhance financial resilience in the face of natural hazards,” Mr. Talemaibua said.

Parametric insurance provides predetermined payouts triggered by specific weather thresholds, enabling affected households to recover faster without the long delays typical of traditional insurance claims.

The Ministry and RBF have been collaborating since 2021 on initiatives to improve rural financial inclusion and climate resilience. This latest step broadens the scope of their efforts and reflects a growing recognition of the economic risks posed by climate change in Fiji’s rural and maritime regions.