Vanuatu has seen a significant benefit from its subscription to the Pacific Catastrophe Risk Insurance Company (PCRIC), receiving a swift parametric sovereign insurance payout of $1.2 million (approximately FJ$2.79 million) in response to the earthquake that occurred in Port Vila on December 17. This payout, which represents the maximum amount allowable under the insurance policy, was disbursed in less than two weeks, showcasing the efficiency of PCRIC’s disaster response framework.
During a formal ceremony in Port Vila, Prime Minister Charlot Salwai Tabimasmas and Finance Minister Johnny Rasou Koanapo accepted the cheque presented by PCRIC’s CEO, Aholotu Palu. While acknowledging that the payout may not fully cover the extensive damages caused by the earthquake, Palu emphasized its critical role in providing immediate support for governments during such challenging times.
The insurance policy, developed in close collaboration with Vanuatu’s government officials, took effect shortly before the earthquake, just 16 days prior. This timely implementation illustrates Vanuatu’s proactive approach to disaster risk management. The policy allocates 80% of the premium towards cyclone risks, with 10% each set aside for earthquake and tsunami coverage. Notably, a unique aspect of this policy is its people-centered payout trigger, which focuses on the estimated number of individuals affected by the disaster, rather than merely assessing the damage to infrastructure.
Palu highlighted the impressive return on investment for Vanuatu, as the payout exceeded the government’s contribution to the earthquake component of the insurance policy by over 73 times. This outcome not only reflects effective planning but also the government’s commitment to enhancing disaster preparedness in a region prone to natural calamities.
PCRIC, based in the Cook Islands, aims to bolster resilience among Pacific governments by ensuring timely financial assistance during crises. This recent experience serves as a hopeful example of how strategic disaster risk management can facilitate recovery and underscores the importance of preparedness as Pacific nations continue to confront the challenges posed by climate change.
In summary, Vanuatu’s swift receipt of the insurance payout exemplifies a successful integration of strategic planning and financial support, fostering optimism for future disaster recovery efforts in the Pacific region. This incident highlights community solidarity and regional cooperation as vital components in overcoming the impacts of natural disasters in an increasingly unpredictable climate.
Leave a comment