Earlier this week, the Pacific Resilience Partnership (PRP) Technical Working Group (TWG) on disaster risk financing (DRF), organized and facilitated the fourth virtual learning episode. With the theme, “Risk Transfer: Shifting the Responsibility for Risk”, the Pacific Catastrophe Risk Insurance Company (PCRIC) CEO Mr. Aholotu Palu joined the learning series as a panelist.
PCRIC is the only provider of sovereign risk insurance in the Pacific, currently providing insurance coverage against tropical cyclones and earthquakes.
During the discussions, Mr. Palu explained that, “PCRIC’s policies are not designed to cover ALL losses faced by Pacific governments following a natural disaster. Rather, we aim to provide nations with a quick injection of funds, acting as a form of direct budget support to leaderships to finance immediate relief needs post-disaster.”
Pacific Island nations are extremely vulnerable and exposed to the effects of climate change. Additionally, they are often severely limited in resources to prepare or respond to disasters. However, understanding the correlation between disasters and the economy allows policymakers to effectively plan their response to natural hazard events with appropriate support.
“Climate change is here to stay, and we have to be ready with all means possible to avoid devastational impacts that have lasting consequences on livelihoods, economic and fiscal balances,” Mr. Palu highlighted.
As part of his presentation, he emphasized the key lessons learnt from PCRIC’s experience as a disaster risk insurance provider:
Mr. Palu also shared the new opportunities being developed by PCRIC in the risk transfer space which included:
This disaster risk financing learning series will continue to run throughout the year with key experts being brought in to exchange ideas and hold conversations around this critical space currently affecting the Pacific region.