Copra farmer Clarence Lepper is still recovering from the devastating impacts of the last two super storms that hit Fiji in 2019. Tropical Cyclone Harold and Yasa left a trail of destruction through Fiji and other Pacific Island countries, forcing many families to pick up the pieces of shattered livelihoods.

Mr Lepper, like many farmers in the coconut industry, has witnessed the damage and mounting losses incurred in the aftermath of a cyclone, which stunts and reverses their gains and progress. Often, he would have to turn to hired help and family members to clear the debris from his plantation, spanning more than 450 acres. It’s no easy task but with money tucked away for a rainy day, he has been able to mitigate the financial challenges brought on by natural disasters.

Mr Lepper signed up for the parametric microinsurance product through Coconut Millers Pte Limited, an implementing partner with the UN Capital Development Fund’s Pacific Insurance and Climate Adaptation Programme (PICAP). He says he has no regrets, describing the product as a source of financial protection against the unpredictably of destructive natural disasters. With increased frequency of tropical cyclones and hurricanes, Mr Lepper believes the parametric micro-insurance product provides an ideal safety net for farmers in the coconut industry. He feels a sense of security, knowing that the protection would be a backup in the event of a tropical cyclone that typically pass through Fiji during the November-April cyclone season.

“We are sleeping easier today. We know this product is going to be of great help,” Mr Lepper stated.

Like other beneficiaries, Mr Lepper has commended Coconut Millers Pte Limited for providing the necessary information and materials about the parametric micro-insurance product. He agreed that financial literacy, especially on products such as the parametric micro-insurance, was vital and that the beneficiaries needed to understand both the risks and the benefits of signing up. Previously when disaster struck, recovery was a slow process due to financial constraints.

“We’d invest in our plantations slowly using funds that we set aside for rainy days. I have 450 acres of copra farm so recovery would be slow. But since taking up the insurance product, I can say it has provided a confidence boost to keep the farm going. If I was doing a project on my farm and a hurricane or cyclone came along, I’d feel a bit more secure knowing that I’d be able to claim some insurance to help with the recovery,” Mr Lepper shared.

His confidence in the product means he is also willing to renew his premiums every year as an investment to protect his farm against the devastating impacts of natural disasters such as cyclones.

While he believes that the product offerings are simple and easy to understand, the real test of the benefits would only be seen if and when disaster strikes. Mr Lepper shared that past assistance for farmers in the immediate aftermath of a cyclone would come in the form of food rations, but financial assistance would go a long way to helping farmers get back on their feet. This, he feels, is where the parametric micro-insurance product could be a game-changer. For now, Mr Lepper is keen to see how the product would be rolled out after a cyclone.