The Pacific Catastrophe Risk Insurance Company and the World Food Programme Host Joint Workshop on Disaster Risk Financing in Tonga

The Pacific Catastrophe Risk Insurance Company (PCRIC) and the United Nations World Food Programme (WFP) hosted a joint workshop on disaster risk financing aimed at providing guidance on planning and implementing strategic interventions to ensure effective disbursement and utilisation of insurance policy payouts. This came following the recent renewal of Tonga’s insurance policy providing protection against the financial impacts of tropical cyclones.

The workshop targeted government agencies and NGOs, bringing together representatives from over a dozen organisations. In her opening remarks, the CEO for the Tongan Ministry of Finance, Kilisitina Tuaimeiapi’ acknowledged the efforts made by PCRIC in providing tailored financial protection specific to Tonga’s unique needs. She also emphasized the timeliness of the workshop, aligning with the government’s initial stages of budget preparation and noting that its outcomes would directly inform the planning process.

The discussion underscored the critical role each entity would play in the event of a category 3 to 5 tropical cyclone. The interventions focused on topics such as coordinating and managing the logistics of delivering food and other essential goods to affected communities, ensuring continuous access to water and sanitation, maintaining health services, including adequate nutrition, and providing cash support to impacted households.

PCRIC’s Risk Manager, Daphney Stone, and Strategic Advisor Catastrophe Risk, Nicolas Pondard, presented an overview of PCRIC’s disaster risk financing services, including the details of Tonga’s parametric insurance policies – which trigger payouts based on pre-identified parameters rather than assessed losses.

In closing the workshop, the Tonga Ministry of Meteorology, Energy, Information, Disaster Management, Environment, Climate Change and Communications (MEIDECC) Acting CEO, Vatulele Tuputupu, reiterated the value of the workshop, particularly in regard to informing budget preparations. He also acknowledged WFP’s support in the form of financing policy premiums for this upcoming cyclone season.

“Strategic partnerships like the one between PCRIC and WFP are important as we demonstrate impactful and sustainable solutions to climate-related shocks. By bringing together diverse stakeholders to strengthen preparedness and response capacities, we are collectively building more resilient communities in Tonga and throughout the region,” said Alpha Bah, Representative and Country Director for WFP in the Pacific.