A Vision for Pacific Regional Engagement with PCRIC
July 13, 2021
PCRIC-FEMM 2021 Statement
Thank you, Secretary General.
Distinguished Ministers of Finance,
Representatives of CROP Agency,
Ladies and gentlemen.
I wish you warm greetings from PCRIC – the Pacific Catastrophe Risk Insurance Company and thank you for the time and attention afforded me today.
PCRIC exists today because of the visionary thinking, decisiveness and affirmation displayed by Ministers who attended the FEMM in 2015 – and decided to launch PCRIC in 2016 in the Cook Islands as the most relevant and beneficial company to serve our island nations.
I say relevant because there is not a single nation here represented which does not face an ever-increasing potential financial impact from climate or geophysical disaster. Relevant because PCRIC sits without equal amongst the arsenal of tools available to complement existing efforts to build the resilience of our nations.
I say beneficial, Mr Chairman, because there is not a single nation here represented which does not need timely access to liquid funds in the immediate aftermath of a natural disaster.
Despite these compelling truths, I must say the fact that much of what was envisioned by Ministers at 2015 FEMM remains yet to be fully realised. There will be many reasons why this is so, but no doubt our recent collective experiences with the COVID-19 pandemic remind us all that our nations face difficult threats. We surely know that when we are not prepared, our nations pay a heavy penalty.
We also know it is during such times of crisis that our nations expect the most of their governments. With life and livelihood in the balance, people expect their governments to not only be prepared, but also to be able to help set their lives right again.
Yet, when resources are scarce and priorities compete, the financial pressures associated with these expectations are burdensome. This is where the decision to become a member of the PCRIC community will ease the burden.
With only 5 years since its establishment, PCRIC has payout more than US$11m to two of our current member nations which had their immediate post-disaster financial burdens eased following major disaster events. These funds were available within 10 days after each event, without restrictions and no loss adjustment process. Similar support is available to all island nations once they become a member of the PCRIF and participate in insurance programs. By joining forces, it creates an economic of scale making the arrangement more efficient, more effective and more affordable than if each country did so alone.
I want to reaffirm that PCRIC exists exclusively for the benefit of PICs. It exists to provide tangible and credible assistance with management of pooling risks associated with disasters.
I also want to let you know that PCRIC has submitted a request to the PIFS to become an observer member. We anticipate a favourable response and believe this step will facilitate greater efficiency, effectiveness, and synergy within the Disaster Risk Finance space.
I thank you again for this opportunity and thank Minsters and officials for their attention here today and for all the support already conveyed to PCRIC.
In the coming weeks and months, we will reach out to many of you individually to explore the way ahead.
Meanwhile, many of the questions you may have regarding PCRIC will soon be answered by our new website, pcric.org, as shown in my background.
This is expected to be launched by end of the of the month, but what we have now is for trial.
Thank you and happy to answer any questions.
Chief Executive Officer