The Pacific Catastrophe Risk Insurance Company (PCRIC), in partnership with WTW, has recently announced the renewal of its insurance portfolio aimed at supporting governments and government-related entities in Pacific Island nations. This collaboration has resulted in the creation of innovative policy designs intended to enhance disaster risk insurance access across the region.
According to Aholotu Palu, CEO of PCRIC, this successful renewal reinforces the company’s commitment to addressing a critical gap in the market by providing insurance solutions to governments and state-owned enterprises that deliver essential services, which typically struggle to obtain such coverage.
As climate change exacerbates the frequency and severity of natural disasters, PCRIC’s insurance solutions will offer vital protection for communities, infrastructure, and economic resources throughout the Pacific. Simon Young, Senior Director in Disaster Risk Finance at WTW, highlighted that PCRIC’s new approach is more focused on the needs of the local population and better aligned with existing conditions on the ground.
The upgraded parametric insurance structures introduced by PCRIC also enhance transparency and trust in the risk assessment processes, providing greater confidence in the modeling of climate-related impacts. The progress made has led to more affordable reinsurance options from multiple markets, empowering governments to effectively manage disaster risks with PCRIC’s support.
For the upcoming years of 2024 and 2025, PCRIC will extend its coverage to include tropical cyclones, heavy rainfall, earthquakes, and tsunamis, benefiting six Pacific governments: the Cook Islands, Fiji, Niue, Tonga, Samoa, and Vanuatu, as well as providing coverage for PNG DataCo, a state telecommunications entity in Papua New Guinea, and the Vatuvara Foundation in Fiji.
This development marks a significant step forward in supporting the resilience of Pacific Island nations amidst escalating climate challenges, showcasing an optimistic trajectory toward enhanced disaster preparedness and recovery in the region.
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