PCRIC Pays Courteous Visit to Tonga’s Minister of Finance
Following productive discussions in Suva, Fiji, during the recent 2023 Forum Economic Ministers Meeting (FEMM), the Pacific Catastrophe Risk Insurance Company (PCRIC) team reconvened with the Hon. Tiofilusi Tiueti, Tonga’s Minister of Finance during their mission in Tonga. During this visit, they provided a comprehensive briefing on the objectives of their mission.
The briefing encompassed policy and technical dialogues concerning established PCRIC policy frameworks including the premium financing approach and methodology for upcoming policy renewals, where Tonga’s interest in bolstering disaster risk management was evident as the Minister confirmed the country’s intent to procure existing policies.
An informed decision was reached by the Tongan Government after meticulous cost-benefit analysis of their policy. They found the benefits to significantly outweigh the associated costs, reinforcing their determination to proceed.
Notably, a significant enthusiasm was expressed for the drought product. The mission team conveyed to the Minister that PCRIC will initiate the procedural steps once the renewal process reaches completion. This pathway necessitates the Tongan Government to formally seek the technical support of the World Bank, a collaboration that PCRIC will facilitate.
The PCRIC team’s briefing also centered on enhancing the comprehension of Tonga’s State-Owned Enterprises about the optimal utilization of PCRIC’s products to enhance their disaster risk management strategies, and potential scholarship and internship prospects aimed at fostering local talent in disaster risk management.
In other matters, the Minister confirmed the participation of Mrs. Kilisitina Tuaime’api, Tonga’s CEO of Finance for the forthcoming Pacific Catastrophe Risk Insurance Foundation (PCRIF) Council of Members (CoM) meeting, scheduled for October 9th in Morocco.
The Minister graciously appreciated the team’s courtesy visit especially with the technical presentation as it provided him with a comprehensive understanding of the diverse instruments within the disaster risk finance domain. This clarity extended to an intricate grasp of the policy triggers specific to Tonga’s context.
