Low-income households in Fiji are highly vulnerable to future climate changes. By 2050, up to 30,000 Fijians could be pushed into poverty and hardship annually, partly due to climate-related stresses. Climate projections included in the recent report ‘Climate Vulnerability Assessment: Making Fiji Climate Resilient’ reveals that climate change could result in floods and cyclones leading to asset losses up to 30 percent higher than current averages. This acute climate vulnerability demands innovative financial solutions for the Fijian Government to respond to extreme climate-related events (e.g. tropical cyclones, extreme rainfall) without drawing on sovereign reserves or relying heavily on international aid flows. The International Finance Corporation (IFC) is supporting the Government of Fiji to design and implement a parametric insurance programme providing livelihood protection for low-income households in Fiji, covering tropical cyclones and extreme rainfall perils. By providing a sustainable mechanism for financing response to these events, this project is a valuable component of broader climate adaptation strategies across the country.