Prime Minister Sitiveni Rabuka has highlighted the critical need for enhancing risk insurance as a vital strategy for nations vulnerable to natural disasters. To advance this initiative, he has signed a significant agreement between the Fiji Government and the Pacific Catastrophe Risk Insurance Company (PCRIC), aimed at establishing the organization in the region and bolstering support for Fiji.
Rabuka pointed out that the frequency and intensity of natural disasters are escalating, largely as a result of climate change. This reality necessitates the development of innovative financing mechanisms, instruments, and tools to adequately address these challenges. He emphasized Fiji’s commitment to collaborating with partners like PCRIC to ensure that Pacific priorities are both acknowledged and acted upon, thereby enhancing Pacific leadership in global climate action.
Expressing his confidence in the initiative, Prime Minister Rabuka stated that the Cabinet of Fiji fully supports this proposal. He believes that this endeavor will significantly fortify disaster resilience and safeguard lives across the nation.
Aholotu Palu, CEO of PCRIC, expressed that the approval for PCRIC to operate from Fiji marks an important milestone as it becomes the first regional organization dedicated to providing swift financial protection against natural disasters in the Pacific. He revealed an ambitious plan to extend coverage to all 14 Pacific Island countries over the next two years, a commitment backed by the region’s leaders. With donor partners contributing US$36 million in start-up capital, along with an additional US$17 million for premium financing, education, and product development through a joint grant with the Global Shield Solutions Platform, they aim to enhance the region’s disaster risk management capabilities.
Palu also mentioned that they are in pursuit of additional funding from Japan via the Asian Development Bank, with expectations for a significant announcement at the ADB Annual Meeting in May 2026. This support will further reinforce PCRIC’s coverage for disaster risks, fostering greater resilience in the face of growing climate challenges.
This proactive stance by Fiji’s leadership marks a hopeful step towards better disaster preparedness and risk mitigation in the Pacific, reinforcing the importance of regional cooperation and innovative insurance solutions in combating the effects of climate change.
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