19 MARCH 2025
By: Jasmine Netzler-Iose
Insurance and Finance company Samoa Surety has launched a new product on top of its cyclone cover aiming at climate change resilience.
The three perils come under the company’s parametric insurance product and will cover drought, excessive rainfall and earthquakes.
The product helps community resilience and recovery from environmental shocks that threaten their homes, livelihoods, and well-being.
Managing Director of the company John Low, at the official launch last Friday said, the product - Micro-Climate Change Bundled Insurance for Samoa - reflects their unwavering commitment to helping communities.
Calling the launch of the product - a significant milestone achievement - the initiative reflects his company's commitment to providing innovative and effective insurance solutions to protect and empower the most vulnerable communities in Samoa.
Since the company launched its parametric insurance product back in 2023, they have taken important strides to refine and enhance what they offer, based on invaluable feedback from their clients and stakeholders.
And, through extensive fieldwork and awareness sessions, Samoa Surety heard first-hand the challenges faced by families and businesses in the wake of climate-related hazards.
“One of the key insights was the need to expand our coverage beyond cyclone-related risks to offer a more comprehensive safety net.”
This product is an additional response to this and further recognizes the broader protection needs of Samoa Surety’s clients.
The groundbreaking innovation is the integration bundled indemnity insurance alongside the parametric coverage.
FIRST SOLUTION OF ITS KIND IN PACIFIC FOR VULUNERABLE FAMILIES
The product is a first for the Pacific and caters specifically to the Pacific context.
“This is the first solution of its kind in the Pacific, designed specifically to offer vulnerable families greater financial security in times of crisis,” he said.
The bundled indemnity insurance product covers essentials protection; funeral coverage, term life insurance, personal accident insurance, and house fire insurance.
According to Mr. Low incorporating these components, ensures the business that individuals and families are not left struggling in the aftermath of adversities.
“Whether it is rebuilding homes, covering emergency expenses, or providing financial relief to families coping with the loss of a loved one, this holistic risk management solution offers a crucial layer of resilience and stability for those who need it most.”
And so these improvements underscores their dedication to strengthening financial protection for Samoa’s most at-risk communities.
“As we move forward, we remain dedicated to working closely with PICAP (Pacific Insurance and Climate Adaptation Programme), our clients, partners and stakeholders to refine and expand these solutions, ensuring that no family is left behind when disaster strikes.”
UNITED NATIONS AND AUSTRALIA
Kamal Kishore, Special Representative of the Secretary - General for Disaster Risk Reduction for the United Nations, who also spoke at the event touched upon climate change adaptation and risk reduction being on the table of discussions for over the last 20 years.
And acknowledged that if countries want to fill the protection gap - innovative solutions must be initiated.
And in doing that insurance must be looked at not just as an industry but, also as an institutional society, with collective efforts from both the private and public sectors, organizations and communities coming up with solutions that serve countries in the quest for adaptability resilience.
Soraya McGinley, Third Secretary for the Australian High Commission congratulated Samoa Surety for the launch of this product under two years and praised the coverage as means of countering the impacts faced by communities and individual households following significant climate change disasters.
She said this secures them from extreme weather events with the product highlighting thinking outside of the box solutions.
Ms. McGinley acknowledged Australia being happy to support this mission along side the government of New Zealand and the British High Commission.
And expressed her excitement about the product being established within innovative Pacific context and links.
The launch of this product reflects the commitment of the Samoan Government, the Central Bank of Samoa, the Samoa Surety and Pacific Insurance and Climate Adaptation Programme to reducing vulnerability and ensuring adaptability she said.
“Great to see Samoa Surety take the lead.”
Minister of Natural Resources and Environment Toeolesulusulu Cedric Pose Schuster was also there to witness the event, the High Commissioners of Australia, New Zealand, and the United Kingdom and Inclusive Innovation Lead at UNCDF Pacific, Ms Akata Taito.