Last week, at the request of the Pacific Catastrophe Risk Insurance Company (PCRIC) and on behalf of the Kingdom of Tonga, the National Emergency Management Office (NEMO) convened a group of stakeholders to consult regarding the parametric drought insurance product which is being developed by PCRIC with the support of the global risk advisory company, Willis Towers Watson (WTW).
Dr. Simon Young, co-head of the Disaster Risk Finance and Parametrics team in the Climate and Resilience Hub at WTW, led the consultations, providing an overview of the findings of Phase 1 of the project, and receiving inputs on design ideas for the drought product.
In attendance were representatives of many of the critical line ministries including Agriculture, Health and Water, including NEMO and climate change officials from the Tongan Ministry of Meteorology, Energy, Information, Disaster Management, Environment, Climate Change and Communications (MEIDECC).
Amongst the ideas discussed was to have an early trigger such that anticipatory actions can be taken e.g., a water crisis emerging, allowing for a more structured and efficient response, as well as a later trigger to support response to acute water shortages. Additional virtual consultations were held with the Meteorological Office and with the Planning Division within the Prime Minister’s Office.
