
PCRIC Monitors TC Pita’s Impact on Cook Islands and Niue
15 January 2025
PCRIC Releases Fourth Annual Report
30 January 2025As a long-term client and advocate for PCRIC, it was a great honour for the CEO, Mr. Aholotu Palu to have the opportunity to meet yesterday with the newly appointed Prime Minister, Hon. Dr. ‘Aisake Eke in Nukualofa. Beyond offering congratulations on his ascension to the role, the meeting provided the opportunity for a detailed briefing on the status of Tonga’s disaster risk policy coverage with PCRIC, and the range of services and opportunities currently under consideration for the nation.
A key item raised was the desire expressed by the Prime Minister to raise coverage limits on existing policies held by Tonga to secure a more adequate level of financial protection for the nation in the face of disaster. To this end, the PM tasked himself with identifying additional sources for support with the resulting higher policy premiums that would be paid.
The CEO provided an update on the ongoing work being funded by the World Bank toward development of a product offering financial protection against the impact of drought, indicating that this work would be completed as soon as possible in the year. He also referenced the continuing dialogue with Tonga Cable Limited and other SOEs in regard to bespoke policies which could be developed to help mitigate the financial risks associated with damage to vital infrastructure assets caused by natural disasters.
The Prime Minister expressed interest in the significant value-add that PCRIC could also offer in terms of education and local capacity building in the area of Disaster Risk Financing through collaborations with USP and other partners. There was also acknowledgement of the important role the PM could play through his position as Chairman of the Pacific Islands Forum Leaders Meeting in continuing to encourage other regional nations to support and engage with PCRIC as part of their broader Disaster Risk Financing strategy.
Whilst in the country, the opportunity was also taken to meet with the caretaker Minister of Finance, Hon. Tiofilusi Tiueti to express gratitude for the unwavering support offered by the government to PCRIC over the years and to confirm PCRIC’s ongoing commitment to policy and service innovation.
As discussions came to an end, there was collective acknowledgement that the December earthquake impacting Port Vila, Vanuatu was the ultimate test and validation of PCRIC’s assurances of rapid response once disaster struck. It was noted that within 14 days of this tragic event triggering calculation and payout mechanisms, funds were transferred to the national government of Vanuatu for use in post-disaster relief efforts. This highlighted the merits of parametric insurance as a valid tool for bolstering disaster response and resilience.