Pacific Catastrophe Risk Insurance Company (PCRIC) has restructured as a segregated portfolio entity to provide new and unique risk transfer products following new legislation passed by the Cook Islands government.
PCRIC is a multi-jurisdictional cooperation mechanism that operates as a development insurer to provide disaster risk finance programmes to Pacific Islands members.
It previously operated as a regionally-focused captive insurance company, owned by the Pacific Island nations of Cook Islands, Fiji, Marshall Islands, Samoa, Tonga and Vanuatu through the Pacific Catastrophe Risk Insurance Foundation (PCRIF).
The updated Pacific Catastrophe Risk Insurance Facility Act allows PCRIC to administer new and expanded disaster risk finance programmes that are legally and financially operated as segregated units of activity.
Instead of establishing a new company subsidiary every time PCRIC launches a new insurance or disaster risk finance programme, the segregated entity structure provides a more efficient and effective solution to protect overall financial health.
This will allow the PCRIC to offer various insurance and risk financing options not previously available to its Pacific Island country members, as well as develop these different risk management and capital bases.
Commenting on the change in legal structure, PCRIC says: “The board and CEO extend thanks to the Cook Islands’ government for their substantial support throughout the process, which resulted in PCRIC’s reorganisation into a segregated portfolio entity.
“Special thanks are conveyed for the long-standing efforts of Garth Henderson, secretary of the Cook Islands Ministry of Finance and Economic Management, and the recent past chairman of PCRIF’s council of members.”
PCRIC CEO Aholotu Palu adds: “This initiative provides PCRIC with incredible flexibility to be even more responsive to the Pacific region’s disaster risk finance needs in addressing the impacts of climate change and other natural hazards impacting vulnerable islands and populations. We will be reaching out to countries to explore better ways of serving them with expanded and tailored financial instruments.”