PCRIC’s Support for Vanuatu’s Disaster Resilience

As part of the country visit program, the PCRIC Management Team recently visited Vanuatu where they had the privilege of meeting with the Honorable Ministers of Finance and Climate Change, along with other senior government officials. Discussions included the ways in which PCRIC can contribute to advancing the country’s resilience-building agenda by providing access to pre-arranged financial instruments for protection against natural disasters.

PCRIC presented its redesigned parametric insurance policies for tropical cyclones and earthquakes, as well as introducing the Company’s new products for drought and excess rainfall. The availability of premium subsidies, educational opportunities, and capacity-building initiatives were also highlighted.

The mission team expressed gratitude to the Vanuatu leadership for sending officials to attend the recent Disaster Risk Finance (DRF) workshops held in Fiji and the Solomon Islands. These workshops provided valuable insights into the opportunities offered by PCRIC and other complementary instruments that the country can access in times of financial need following disasters. This knowledge will inform the development of Vanuatu’s DRF strategy, expected over the coming months.

Dialogue also explored the possibility of PCRIC providing parametric policies to support key State-Owned Enterprises, either through separate arrangements or by expanding existing policies held by the national government.

It was evident that natural disasters impose a significant financial burden on the government, especially when fiscal space is limited. PCRIC’s renewed products can help alleviate fiscal pressure during the response stage. The Vanuatu leadership and officials expressed keen interest in re-engaging with PCRIC along with the consideration of purchasing tropical cyclone and earthquake products for the upcoming season starting on November 1st, 2024.

Additionally, the mission team informed Vanuatu of its continued membership in the Pacific Catastrophe Risk Insurance Foundation and extended them an invitation to attend the scheduled Council of Members meeting later in April.

The PCRIC team conveyed sincere appreciation for the warm hospitality extended by the government of Vanuatu. They emphasised the importance of overcoming the challenges posed by climate change and underscored the significance of having parametric policies to bridge financial gaps, reiterating their commitment to supporting Vanuatu’s efforts in disaster resilience.