Fiji Strengthens Disaster Resilience with PCRIC Insurance Partnership
A significant milestone has just been reached in the Fiji Government’s pursuit of an improved capacity to respond to the financial impact of natural disasters upon the nation.
After the recent signing of a Commitment Letter at the PCRIF Council of Members meeting held in Morocco on the margins of the World Bank/IMF Annual Meetings on October 9th, Fiji has now firmly established the nation’s participation in PCRIC’s tropical cyclone and excess rainfall parametric insurance program with the signing of the PCRIC Parametric (Agreed Valuation) Insurance Policy documents yesterday in Suva.
Policies taken out under this program are designed to address gaps that can appear in finances in the immediate aftermath of a natural disaster, when resources are stretched to their limit and beyond as the government works with communities to recover from the devastation imposed by extreme weather events.
The parametric insurance policies will allow Fiji to receive rapid payouts should a tropical cyclone exceed a predetermined windspeed in the vicinity of the islands, or should a rainfall induced flood impact a predetermined number of people. With payouts being made in as little as 10 to 20 days post-disaster, this enables the government to secure an agreed amount of funds and quickly allocate resources to priority areas for relief and recovery measures, investment in resilience mechanisms, or ensuring essential infrastructure is built back better.
On signing the policy documents, Mr. Shiri Gounder, the Permanent Secretary for Fiji’s Ministry of Finance acknowledged that it had been a demanding process to secure the commitment now confirmed. He was thankful for the professionalism and dedication demonstrated by all parties in delivering a truly valuable outcome for Fiji.
CEO of PCRIC, Mr. Aholotu Palu, responded by saying that this commitment reflected a significantly proactive step towards bolstering Fiji’s overall disaster preparedness. “This accord stands as an example for other Pacific Island nations, all of which are challenged by the enormous costs associated with disaster recovery and resilience.”
Mr. Palu went on to express gratitude on behalf of the PCRIC Board and Management Team, for the decisive leadership demonstrated throughout by the Hon. Professor Biman Prasad, Fiji’s Deputy PM and Minister for Finance, Strategic Planning, National Development, & Statistics. “The Minister consistently emphasized the significance of regional solidarity and the active pursuit of disaster risk finance instruments which bolster regional efforts to build resilience,” he said. “With the annual cyclone season fast approaching, there is no better time for regional governments to partner with PCRIC and choose readiness, not regret.”
