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 policies tailored for governments and related entities across Pacific Island nations. This decision was revealed in a recent announcement aimed at enhancing disaster risk management in the region.
The collaborative effort has led to the development of new policy designs, bolstered by WTW’s expertise in Disaster Risk Finance (DRF) and Alternative Risk Transfer (ART). PCRIC’s CEO, Aholotu Palu, highlighted that this successful renewal significantly expands the insurance options available to governments and state-owned enterprises that supply vital services, filling a crucial gap in this market.
As the impact of climate change intensifies, with the frequency of natural disasters rising, PCRIC’s newly refined insurance products are set to play a critical role in safeguarding communities, economies, and essential infrastructures throughout the Pacific. Simon Young, WTW’s senior director for Disaster Risk Finance, noted that the updated products now adopt a more human-centered approach and are specifically customized to reflect local conditions. The new simplified parametric structures also enhance transparency, improving confidence in modelling and addressing the impacts of climate change.
The improvements in PCRIC’s offerings have resulted in reduced costs for reinsurance from a broader range of markets, empowering governments to better manage disaster risks. For the years 2024 and 2025, PCRIC has secured coverage for severe weather events such as tropical cyclones, heavy rains, earthquakes, and tsunamis for six Pacific nations: the Cook Islands, Fiji, Niue, Tonga, Samoa, and Vanuatu. Furthermore, it extends coverage to PNG DataCo, a state-owned telecommunications company in Papua New Guinea, and the Vatuvara Foundation in Fiji.
This initiative presents a positive step forward in enhancing resilience against natural disasters in the Pacific Islands, reflecting a collective commitment to improving disaster preparedness and response for vulnerable populations.
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