The Pacific Catastrophe Risk Insurance Company (PCRIC) was honored to have received an invitation to speak at a side event during the recent Pacific Week of Agriculture and Forestry hosted by the Food and Agriculture Organization (FAO) in Nadi, Fiji.
It is worth noting that PCRIC is currently in the process of exploring a potential collaboration with the FAO to assess the viability of incorporating anticipatory action components into its insurance payouts.
As agriculture plays a significant role in the gross domestic product (GDP) of Pacific Island countries, food security is a crucial component of their economies. The threat of climate change to the Pacific region highlights the pressing need for innovative and insurance-based risk pooling solutions, especially in the agriculture sector where tropical cyclones disproportionately impact the poorest and most vulnerable populations.
During his presentation, PCRIC’s CEO, Mr. Aholotu Palu, emphasized the importance of a proactive approach to investment in financial coverage for this indispensable sector. He noted that this industry is interconnected to the Pacific’s social development since food security is a fundamental issue for island-based economies.
The CEO cited instances of severe agricultural damage inflicted by tropical cyclones Gita and Pam on Tonga and Vanuatu, respectively, resulting in multimillion-dollar losses.
Furthermore, he expounded on how PCRIC provides effective remedies to substantially curtail economic losses associated with such natural calamities, emphasizing the crucial role of a mindset shift in enhancing financial protection and fortifying preparedness against natural disasters.
Building resilience is key to ensuring that farmers can rapidly adapt to disaster shocks and maintain sustainability by avoiding loss of revenue or assets.