PCRIC Holds Dinner at PIFS for FEMM Delegates

As a precursor to the official start of the 2024 Forum Economic Ministers Meeting (FEMM), the Pacific Catastrophe Risk Insurance Company (PCRIC) again hosted a dinner as a means to facilitate informal dialogue with officials on the cost and impact of catastrophic disasters across the region.

A perennial and worsening challenge for Pacific Small Island Developing States, PCRIC Board Director, Mr. Siosiua Utoikamanu highlighted in his opening remarks that “Every year the Pacific SIDS face an average annual disaster loss of approximately USD $1.1b, nearly 5% of our combined GDP. These losses go beyond being simple annual setbacks – crucial resources are constantly diverted to rebuild damaged infrastructure and livelihoods – a process that can take months or even years.”

Beyond the impact on physical assets, Mr. Utoikamanu went on to emphasise that, “The most vulnerable sections of society bear the brunt, struggling to rebuild their lives after each disaster. We have all lived, continue to live, and witness the human cost of disasters.”

In drawing the evening to a close, the PCRIC CEO, Mr. Aholotu Palu reminded those in attendance that, “PCRIC offers a practical solution by providing financial assistance for immediate disaster response expenses, reducing the need to compromise national budget priorities.”

He went on to indicate that PCRIC services now extend to offering policies to SOEs, and NGOs as well as governments, and that PCRIC was actively seeking ways to develop and provide products to key economic sectors like agriculture, fisheries, tourism and utilities. These all represented markets untouched by commercial insurers and underscored why PCRIC was established to serve the region. “The opportunities provided by PCRIC are enormous,” he said.

The dialogue on this critical subject area will continue over the coming days through a series of bilateral meetings between PCRIC and officials attending FEMM24. Since 2014, PCRIC has paid out USD $11.2 million to member states. A modest amount set against the total losses incurred, but highly valued at the most critical of times with funds available within days of an event due to PCRIC’s effective rapid response protocol.

In the last financial year, PCRIC’s insurance coverage amounted to nearly USD $39 million, protecting against cyclones, earthquakes, and excess rainfall.