The Pacific Catastrophe Risk Insurance Company CEO, Mr. Aholotu Palu, offered warm congratulations to Mexico’s Ministry of Finance on the decision to renew the country’s US$250 million dollar ‘natural disaster’ parametric insurance coverage.
“It is certainly great to see a nation the size of Mexico continue on with this type of significant coverage as a critical component of their disaster relief financing plans. There’s no doubt that parametric insurance should serve a role in every nation’s portfolio. I applaud Mexico’s foresight and proactive undertaking,” noted Mr. Palu.
Mexico views the coverage as protection for public finances in catastrophe recovery scenarios, ensuring ongoing operations are not derailed following a natural disaster. The heavy draw on finances made by recovery efforts is met by funds provided through the coverage secured.
Mr. Palu continued, “This example of progressive forward thinking and commitment by a much larger nation exemplifies why smaller, island nations, such as those in the Pacific Islands, which are exposed to greater degrees of disaster risk yet have far fewer financial resources at hand, need to incorporate parametric protection as part of their disaster risk financing strategies.”
He concluded, “We appeal to the Pacific Island nations and welcome key donor stakeholders to note Mexico’s judicious commitment to parametric insurance coverage and to further pursue collaborations with PCRIC to offer the best possible protection to each and every one of our ‘Blue Pacific’ nations.”