The Pacific Catastrophe Risk Insurance Company (PCRIC) was invited to attend the second workshop addressing Loss and Damage (L&D) held in Bangkok, Thailand. The CEO, Mr. Aholotu Palu, represented the company. The invitation resulted from his participation at the recent UN Climate Change second Glasgow Dialogue (GD2) held in Bonn, Germany, last month.
Co-hosted by the Government of Thailand and the Economic and Social Commission for Asia and the Pacific (ESCAP), the second L&D workshop served as a crucial platform for fostering collaboration and knowledge exchange.
With the UN formally acknowledging PCRIC’s role as a strategic catalyst in the Pacific region, the invitation was an exceptional opportunity for the company to strengthen its position in spearheading regional initiatives dedicated to effectively tackling critical issues concerning L&D.
Mr. Palu emphasized that in the pursuit of addressing L&D in the region, a comprehensive approach proves essential. The evaluation of existing resources, tools, and modalities that cater to L&D services becomes crucial. Prioritizing the utilization and enhancement of these resources helps prevent unnecessary duplication and allows for building upon existing and established foundations.
Considering the Pacific’s perspectives, creating new institutions, systems, or processes can be challenging due to limited on-the-ground capacity. Due to this, a tailored approach becomes necessary, moving away from rigid accreditation processes utilized by other facilities.
He highlighted that a simplified process helps avoid a one-size-fits-all solution that might not align with the Pacific’s unique circumstances. Adapting fiduciary standards to the Pacific’s distinct requirements further fosters trust and enables effective resource allocation while upholding accountability and a good enough standard. This standard serves as a crucial stepping stone for the Pacific, propelling the region towards the attainment of best practices.
Addressing accessibility concerns is vital in ensuring a smooth process. Flexibility must be prioritized to avoid delays and obstacles that could hinder progress, encouraging efficient and inclusive participation in L&D initiatives. Responsible and transparent use of funds is critical for generating tangible outcomes at both the community and broader regional levels.
For instance, the issuing of advanced partial payouts empowers countries to engage in proactive disaster preparedness. Stressing seamless coordination through regional facilities, Mr. Palu emphasized the importance of grounded roles, as seen with the Global Shield. It’s essential to clarify that pre-arranged financing primarily addresses immediate response needs, highlighting the need for comprehensive solutions encompassing both response and recovery aspects.
Drawing attention to the importance of supporting a standalone facility dedicated to addressing L&D challenges in the region, he urged the need to ensure its independence from multilateral development banks. The urgency to access facilities prompts exploration of efficient alternatives like risk transfer rather than risk retention, especially as becoming a Newly Industrialized Economy (NIE) may take significant time.
As PCRIC continues to forge ahead in its mission, the commitment to empowering Pacific Island countries remains resolute, bolstered by the recognition and support garnered from both the international and regional communities.