Tonga To Receive Record Insurance Payout Following Cyclone Harold
29 April 2020
COOK ISLANDS, February 20, 2018 – Following Cyclone Gita, the Pacific Catastrophe Risk Insurance Company (PCRIC) has announced a significant payout of US$3.5 million to the government of Tonga, based on its insurance coverage for tropical cyclones. The funds were transferred just seven days after the cyclone struck, enabling rapid-response financing to bolster disaster relief efforts and support effective service delivery in affected areas.
Tonga is one of five Pacific Island countries that have purchased catastrophe risk insurance from PCRIC, a regional platform providing insurance against climate and seismic hazards, specifically tropical cyclones and earthquakes/tsunamis. PCRIC policies are designed to ensure payouts within 10 days of a triggering event, granting immediate liquidity for disaster response.
Cyclone Gita reached Category 4 intensity before making landfall in Tonga, resulting in extensive damage primarily due to its destructive winds.
“Our thoughts and prayers go out to the affected communities across the Pacific,” said PCRIC Chief Executive David Traill. “Despite the tragic circumstances, we take pride in being able to provide rapid funding to the Tongan government just seven days after Gita’s landfall, which will offer immediate support to meet the needs of local communities.”
Traill emphasized the importance of a coordinated disaster management capability across the Pacific, stating, “PCRIC stands as a critical support system to ensure governments can act quickly following disasters.”
He added, “The increased coverage provided to Pacific Island countries through the establishment and capitalization of PCRIC, thanks to our donor partners, has had a positive impact on our ability to support the region.”
Traill acknowledged the generous capital contributions from the governments of Germany, Japan, the United Kingdom, and the United States, as well as the World Bank’s support for the overall PCRAFI Program.
PCRIC is committed to ongoing efforts to develop new products aimed at enhancing financial protection for governments against the impacts of climate change, including droughts, excess rainfall, and other seismic hazards.
Contact:
David Traill
Chief Executive
Pacific Catastrophe Risk Insurance Company (PCRIC)
David.Traill@PacificCatastropheRisk.org
