Micro-insurance is being considered as one of the options for addressing the vulnerability of the poor and is being experimented world-wide. The successes of micro-insurance, in a limited way, have been observed in matured micro-finance markets, such as in India and Philippines. In the sparsely populated Pacific Island Countries (PIC), micro-finance markets are in its nascent stage and hence the provision of micro-insurance services is negligible in the PICs. Microinsurance is well recognized as a tool for livelihood security supplementing community and Governmental Support, Pacific Financial Inclusion Program (PFIP) is keen on understanding the scope of micro-insurance in these island countries and help them in achieving the goal of financial inclusion. Towards this, PFIP has commissioned a study of micro-insurance in two large pacific island countries, Fiji and Papua New Guinea.