Tower has announced the introduction of Rainfall Response Cover, a parametric insurance product designed to distribute automated payouts to Fijian communities when precipitation levels reach specified thresholds. The product operates independently of damage assessments, allowing rapid fund distribution following qualifying rainfall events.
Fiji experiences significant natural hazard exposure, ranking 15th on the World Risk Index’s 2021 assessment. Esala Masitabua, deputy governor of the Reserve Bank of Fiji (RBF), endorsed the development. “These innovative products are enabling communities and families living in areas affected by specific perils to access insurance as a means of protection against financial loss,” Masitabua said. The RBF noted that rainfall events occur regularly throughout the year, making the coverage applicable to local conditions.
The insurer is launching the offering as a pilot initiative during the 2025–2026 wet season, using technology developed by CelsiusPro through its White Label Platform. The online system manages premium calculations, weather data monitoring, and policy generation while handling payment distribution.
CelsiusPro’s digital infrastructure supports the delivery model, allowing automated processing and weather integration. Mark Rueegg, CelsiusPro group CEO, described the partnership. “The effects of climate change and natural catastrophe events are increasingly felt in the Pacific. Our continued partnership with Tower and the introduction of Rainfall Response Cover is a testament to our combined efforts in providing financial resilience and accessible parametric cover for the region,” he said.
The platform incorporates premium subsidies during the pilot phase, with support from the United Nations Capital Development Fund (UNCDF) and the Pacific Insurance and Climate Adaptation Programme under the InsuResilience Solutions Fund (ISF) project. The RBF provides regulatory oversight and contributes additional subsidy mechanisms.
Tower offers the Rainfall Response Cover as part of its regional insurance operations. “For 151 years in the Pacific and 156 in New Zealand, we have been committed to helping people protect what matters most. Creating innovative parametric products is one way we are helping the Pacific Islands to be future ready,” said Ron Mudaliar (pictured), Tower’s chief underwriting officer.
The product builds on Tower’s earlier rollout of Cyclone Response Cover in Fiji (2022), Tonga, and Samoa (2023). The coverage provides financial support to policyholders whose locations experience cyclonic events that satisfy predefined thresholds.
Tower has also expanded its publicly available risk ratings and pricing model to encompass landslide and sea surge events alongside existing earthquake and inland flooding measures. Tower chief executive Paul Johnston explained the insurer’s risk-assessment changes. “As weather events become more frequent and extreme, it’s important people have information about the risks that could affect their property. We want to help people become more resilient to the impacts of climate change and prepared for the future,” he said.
While Tower expands its offering, Fiji-based SUN Insurance – with the support of the RBF – has introduced revised parametric products incorporating modifications based on stakeholder consultation. The revisions adjusted activation levels on agricultural coverage and combined disability and welfare products into single offerings at 10% premium rates. Padam Lala, SUN’s chair, commented: “We envision a future where parametric insurance becomes a cornerstone of national disaster preparedness, where farmers, fishermen, and families can face the future with confidence, not fear.”
The RBF commented: “The RBF extends its sincere appreciation to SUN and Tower Insurance for their leadership and commitment to maintaining the availability of parametric insurance in Fiji’s market. Their continued partnership ensures that innovative, inclusive, and sustainable financial protection remains within reach for Fiji’s most vulnerable communities.”
