In the News

The Pacific Catastrophe Risk Insurance Company (PCRIC) and the United Nations World Food Programme (WFP), have signed a Memorandum of Understanding (MoU), marking a major advancement in disaster risk financing initiatives for the Pacific region. The MoU was signed by PCRIC's CEO, Aholotu Palu, and the WFP Deputy Executive Director and Chief Operating Officer, Carl Skau. 

There is growing interest from the world’s more developed countries to subsidise premiums for developing nations that wish to insure themselves against natural disasters, said Pacific Catastrophe Risk Insurance Company (PCRIC) chief executive officer Aholotu Palu. PCRIC, a company collectively owned by Pacific island countries that are members of the PCRIC council, which includes Fiji, was up in 2016 and now helps its member countries to insure themselves against natural disasters on a collective level.

"Fiji is the Jerusalem of the Pacific - it's been blessed because of its strategic political and financial location in the region," said Aholotu Palu, chief executive officer of the Pacific Catastrophe Risk Insurance Company (PCRIC).

The Tonga Ministry of Finance (MOF), represented by 'Ana Ika, took part in a panel discussion at a side event titled 'Closing the Protection Gap through Premium Support.' The event, featuring UNCDF, Global Shield Solution Platform, Centre for Disaster Protection, Fiji Government Climate Change Advisor, and PCRIC, concentrated on premium support within the context of climate-vulnerable Pacific countries. The discussion centered on enhancing support for vulnerable communities.

A Sovereign Risk pool summit took place on October 5, 2023 in London, UK, to facilitate strategic engagement across representatives of the African Risk Capacity Ltd, the Caribbean Catastrophe Risk Insurance Facility (CCRIF SPC) including Central America, the Pacific Catastrophe Risk Insurance Company, and the Southeast Asia Disaster Risk Insurance Facility.  Together, the Sovereign Risk pools have been established to serve sovereign climate and disaster risk insurance objectives of nearly 100 nations globally.

"With the nation’s already stretched budget dollar unable to accommodate any more additional cost, let alone unexpected ones, the decision by government to finally invest in a climate-based parametric insurance policy has been seen as a move in the right direction. Under the Cat-in-a-Circle product, Government is eligible to receive a payout for cyclones Category 3 and above. An allocation of $2.5 million has been set aside in the 2023-2024 Budget for the subscription of parametric insurance cover. However, Government is in discussion with development partners on the possibilities of premium subsidy."

The Assistant Minister at the Fiji Office of the Prime Minister Hon. Sakiusa Tubuna met with the Management Team of the Pacific Catastrophe Risk Insurance Company (PCRIC) last week. This meeting was part of building the strong momentum established earlier in the year, when the team had also met with the Deputy Prime Minister and Minister for Finance, Hon. Biman Prasad.

Despite Fiji’s inclusion in Pacific Catastrophe Risk Insurance Company’s (PCRIC) risk pool, the country currently lacks a PCRIC insurance policy. This was highlighted by PCRIC during a meeting with Deputy Prime Minister and Minister for Finance, Strategic Planning, National Development and Statistics, Professor Biman Prasad.

The Pacific Catastrophe Risk Insurance Company (PCRIC) management team recently visited the Cook Islands for the first time to hold a series of high-level meetings with relevant authorities including the Prime Minister and Minister of Finance, Mark Brown.