The Pacific Catastrophe Risk Insurance Company (PCRIC) has partnered with WTW, a prominent global advisory and broking firm, to announce the renewal of its insurance policies for governments and government-related entities across Pacific Island nations. This renewal is linked to a reinsurance placement aimed at enhancing disaster risk coverage in the region.
The newly crafted policy designs, developed by PCRIC with the assistance of WTW’s Disaster Risk Finance and Alternative Risk Transfer teams, are intended to improve access to robust disaster risk insurance solutions for Pacific nations. Aholotu Palu, the CEO of PCRIC, highlighted that this successful renewal will strengthen PCRIC’s service offerings.
Palu emphasized the critical role PCRIC plays in filling a significant market void in the Pacific, providing essential insurance solutions to governments, including state-owned enterprises vital for public services, that would not access these resources otherwise.
Amid the heightened impact of climate change leading to more frequent natural disasters in the affected areas, PCRIC’s insurance products are poised to deliver essential protection for communities, government assets, economic resources, and key infrastructure services, including coral reef conservation.
Simon Young, Senior Director of Disaster Risk Finance at WTW, noted that the new policy framework is more focused on the needs of individuals and aligned with local conditions. Moreover, the streamlined parametric structures enhance transparency in analytics and bolster confidence in climate impact modeling.
These developments have not only led to more competitive pricing for reinsurance but have also empowered governments to manage disaster-related risks in a more economically feasible manner with PCRIC’s support. For the years 2024 and 2025, PCRIC will provide coverage against tropical cyclones, heavy rainfall, earthquakes, and tsunami risks for six Pacific governments, including the Cook Islands, Fiji, Niue, Tonga, Samoa, and Vanuatu. Beyond this, coverage also extends to PNG DataCo, a state-owned telecommunications provider in Papua New Guinea, and the Vatuvara Foundation in Fiji.
This collaboration signals a hopeful step forward for Pacific Island nations in strengthening their resilience to natural disasters, ultimately ensuring better protection and recovery for their citizens and critical infrastructures.
In summary, PCRIC’s renewal of its insurance portfolio, backed by improved products and increased market participation, represents a significant advancement in safeguarding the Pacific region against natural calamities, fostering a more secure future for its people and environment.
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