The Pacific Catastrophe Risk Insurance Company (PCRIC), in partnership with WTW, a prominent global advisory and broking firm, has announced the renewal of its insurance portfolio for governments and government-related entities in Pacific Island nations. This update aims to enhance access to improved disaster risk insurance solutions in the region.
The new policy designs were developed by PCRIC with backing from WTW’s Disaster Risk Finance and Alternative Risk Transfer teams. Aholotu Palu, CEO of PCRIC, emphasized that this renewal will significantly boost the company’s offerings, filling a critical market gap in the Pacific by providing insurance solutions to governments and state-owned enterprises that deliver essential services.
With the increasing intensity of natural disasters due to climate change, PCRIC’s insurance products are set to provide crucial protection for individuals, governments, economic assets, and vital infrastructure, including coral reefs. Simon Young, WTW’s senior director for Disaster Risk Finance, noted that the new policy approach is more focused on the needs of people and is tailored to local conditions, offering greater transparency and reliability in terms of climate risk modeling.
The improvements made have also resulted in more competitive reinsurance rates from various markets, allowing local governments to manage disaster risk more effectively with PCRIC’s support. For the years 2024 and 2025, PCRIC will cover insurance against tropical cyclones, heavy rains, earthquakes, and tsunamis for six Pacific governments: the Cook Islands, Fiji, Niue, Tonga, Samoa, and Vanuatu, as well as PNG DataCo, a state-owned telecommunications company, and the Vatuvara Foundation in Fiji.
In light of the ongoing challenges presented by climate change, the initiatives taken by PCRIC and WTW are not just timely but also crucial for building resilience in vulnerable communities. The renewed insurance portfolio represents a significant step forward in safeguarding economies and lives across the Pacific region, showing an optimistic path toward better preparedness for future disasters.
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