Microinsurance in Fiji: An Evaluation of Demand for Insurance

This paper evaluates the demand for microinsurance in Fiji by studying the response among the members of four potential distribution partners based in Fiji: Partners in Community Development Fiji, the Catholic Church of Fiji, the Fiji Muslim League, and Then India Sanmarga Ikya Sangam.The paper used qualitative and quantitative research methods in the form of focus group discussions, key informant interviews, and surveys to discover the number of potential clients that have the ability to pay for insurance in both rural and urban areas. Findings include:

• About 19,000 rural and urban households were represented in the study, and nearly 10,000 households earn above the basic needs poverty levels;
• Majority of rural households reported to earn average weekly incomes above the rural poverty level;
• People currently depend on loans from financial institutions, family and friends, and moneylenders to manage financial emergencies;
• Lack of awareness of insurance serves as the largest barrier for insurance expansion;
• Client education will be a crucial starting point to any significant expansion of the insurance industry.

The paper concludes that there appears to be substantial demand for well adapted insurance services that cater to the unique needs and limitations of low and middle income households.