The Pacific Catastrophe Risk Insurance Company (PCRIC) participated in the inaugural regular briefing meeting of the Coordination Hub for the Global Shield against Climate Risks. This event brought together various organizations along with the regional risk pools to discuss critical matters. Among the key topics deliberated was the initiation of a comprehensive review process among member organizations, aimed at offering valuable recommendations for the Global Shield Solutions Platform (GSSP) thematic window.
A thematic window refers to a specific area of priority within a broader framework. In this context, the thematic window will be designed to channel resources, funding, and efforts towards strengthening the regional risk pools. It aims to address challenges such as the insufficient and inconsistent provision of premium support and the limited technical capacities for risk understanding among respective member countries.
The proposed support to strengthen the regional risk pools includes initiatives to enhance ownership among member countries, improve local risk understanding, and build technical capacities in climate and disaster risk finance and insurance (CDRFI).
Additionally, efforts will be made to strengthen impact by establishing and standardizing delivery frameworks, such as payout mechanisms and contingency plans. These measures aim to bolster the regional risk pools and ensure their effectiveness in managing and mitigating climate and disaster risks.
The possible introduction of this thematic window initiative marks a significant milestone as the first tangible outcome following the MoU signed during COP27 between the regional risk pools. This landmark agreement facilitated enhanced cooperation and partnership between PCRIC, the African Risk Capacity Limited (ARC Ltd.), and the Caribbean Catastrophe Risk Insurance Facility Segregated Portfolio Company (CCRIF SPC).
In June this year, the Southeast Asia Disaster Risk Insurance Facility (SEADRIF) was also officially admitted as a party to the MoU. They now join PCRIC, ARC Ltd. and CCRIF SPC in collaborating and sharing best practices in parametric insurance models, developing new and innovative disaster risk finance instruments and undertaking joint initiatives focused on advocacy, capacity building and training.