The Pacific Catastrophe Risk Insurance Company (PCRIC) is delighted to announce its upcoming incorporation into the Global Shield Coordination Hub as reflected in the recently approved governance charter. This significant development is a direct outcome of the endorsement received from the InsuResilience High-Level Consultative Group (HLCG) in May.
This incorporation signifies the establishment of a crucial partnership between the Global Shield and PCRIC, with a focus on implementing their activities within the Pacific region. This achievement emerged from constructive discussions between the Global Shield Secretariat and PCRIC during COP 27, subsequent to its launch. It was proposed that the Global Shield could collaborate with PCRIC to mitigate potential confusion surrounding the provision of disaster risk financing instruments in the Pacific region.
This strategic approach is of paramount importance to preserve the well-established relationships that PCRIC has cultivated with existing and prospective Pacific countries, ensuring that these valuable connections remain uncompromised.
The Global Shield, an initiative jointly developed by the V20 of 58 climate-vulnerable economies and the Group of Seven (G7), aims to address climate risks and facilitate the recovery of low-income and vulnerable countries in the face of climate-related disasters.
Plans are underway to introduce and familiarize stakeholders with the Global Shield during the upcoming Forum Economic Ministers Meeting (FEMM) scheduled to be held in Fiji in August. This platform will provide an opportunity for stakeholders, development partners, and particularly Pacific Finance Ministers to gain a comprehensive understanding of the accessibility process and the benefits derived from this financial mechanism. The implementation aspect of the Global Shield would emphasize parametric insurance cover, among other risk financing instruments available.
Through the Global Shield Financing Structure, the Pacific region’s endeavors to access increased capital in support of their disaster risk finance priorities will become more efficient. This development will also contribute to enhancing regional and national comprehension of how this mechanism directly supports the climate risk strategies of the Pacific.
In the coming weeks, PCRIC will receive additional details regarding the official onboarding process into the Coordination Hub, along with further guidance on the subsequent steps to be taken. PCRIC looks forward to embarking on this collaborative journey and making significant strides in addressing climate risks and enhancing disaster risk finance capabilities in the Pacific region.
Furthermore, PCRIC has received an invitation to participate in an upcoming meeting organized by the InsuResilience Secretariat, where critical aspects of this financial mechanism will be discussed. The Global Shield recognizes the crucial role played by regional risk pools, such as PCRIC, in the development and provision of innovative insurance products for national governments.