The Pacific Catastrophe Risk Insurance Company (PCRIC) CEO Mr. Aholotu Palu was recently in Tonga and met with the Minister for Finance, Hon. Tiofilusi Tiueti.
Discussing Tonga’s parametric insurance policy that the government currently has in place with PCRIC, Mr. Palu highlighted its importance as an instrument for managing risks associated with natural disasters in the Pacific. In this way, leaderships have the added ability to be more proactive against natural events, rather than responding when it has occurred.
The Minister and the CEO also touched upon other matters such as the International Development Association (IDA) program allocation for Tonga’s next premium subsidization, the linkage of loss and damage funds announced during COP in Egypt last year to what PCRIC is providing to the region, and PCRIC supporting disaster risk finance initiatives based on Tonga’s financial protection strategy.
To date, Tonga has benefitted from 3 payouts for tropical cyclone Ian in 2014, tropical cyclone Gita in 2018 and tropical cyclone Harold in 2020.