Disaster Risk Protection a Key Focus of PNG Country Mission

Ahead of the anticipated annual renewal of the innovative disaster risk protection policy in place between PNG DataCo and regional parametric insurance provider, the Pacific Catastrophe Risk Insurance Company (PCRIC), CEO, Mr. Aholotu Palu met with senior executives to discuss the renewal process and related matters.

The policy currently in place helps address the financial impact of earthquake damage to PNG DataCo’s critical submarine fibre-optic cable network. A world-first innovation in disaster risk protection when initiated in 2024, the policy allows for a payout of a pre-agreed sum in as little as 14 days after a qualifying event occurs. This rapid response allows immediate action to be taken to reinstate infrastructure critical to communities and the economy as a whole.

Whilst in Port Moresby, the PCRIC CEO also met with the Governor of the Bank of PNG, Ms. Elizabeth Genia, to continue dialogue on sovereign-level disaster risk protection options PCRIC might be able to offer PNG. Also discussed were several climate and disaster-related financing instruments that the bank has under consideration, with the scope for technical collaboration with PCRIC tabled.

It was proposed that a technical analysis be undertaken in the coming months as a precursor to determining how best the parties might work together to positively contribute to the nation’s disaster resilience to disasters and adaptation to the impacts of climate change. As the most highly populated nation in the Pacific Islands region and one which currently does not have any sovereign disaster risk insurance in place, this is an exciting development in support of PCRIC’s regional mandate.