PCRIC: A Tool with Sharp Teeth
The financial losses caused by natural disasters continue to rise, and Pacific Island Countries (PICs) experience the greatest impacts. Natural disasters generate significant fiscal risk and create major budget volatility. Even countries with robust disaster risk management programs can still be highly exposed to the economic and fiscal shocks caused by major disasters.
PCRIC is able to provide PICs with access to international insurance markets at competitive rates by pooling the risk of several countries together, and is also able to attract the support of international partners.
Streamlining the Process
A critical challenge confronting PIC governments in the aftermath of a disaster is securing access to immediate financial resources to cover expenditure on emergency relief and response and the maintenance of essential government services. Forum leaders in their meeting in 2019 reaffirmed the importance of country-driven, inclusive and coordinated action to strengthen climate and disaster resilience. PCRIC is the catalyst to realize the leaders’ stated ambition.
We accomplish this through:
Redefining Response Mechanisms
Following detailed assessments of loss exposures, risk evaluations, and decades of historic data on disasters experienced throughout the Pacific Islands region, forecasting models were put in place that would allow for individual countries experiences to be contextually placed within a larger, regional pallet for the purpose of access to insurance and financial products.
This allows for 1) enhanced access to international insurance markets 2) at improved pricing structures and 3) with a more appealing and structured platform for donor participation.
Helping Nations to Secure Financial Support Options
PCRIC provides data and technical support for National Disaster Management organisations and support organisations. PCRIC also provides access to uniquely customised Insurance solutions for nations while working through reinsurer negotiations and wherever possible, helping to facilitate premium subsidisation through donor support.
When A Disaster Occurs
We’re on it…. We’re monitoring things and as soon as the scale of an event reaches the pre-agreed trigger points per the insurance policy in place, our processes for settling a claim against that policy are initiated. While dealing with the immediate aftermath of a disaster, your attentions will be required elsewhere. PCRIC is at the helm, working with your team and the insurance providers to ensure prompt attention.
Assessing the Claim
Parametric policies ensure extremely rapid payouts with no debates. Extensive forecasting and modelling have downsized sophisticated assessment ahead of payout decisions to a focus on a small number of key metrics such as wind speed, rainfall, etc. If the event has reached or exceeded a trigger point, the magnitude of the applicable payout up to the maximum value insured is determined. Now we work on the payout.
Making Funds Available Quickly
There’s always a balance between humanitarian needs and the need for repairs to infrastructural damage. Based on your emergency cash availability, that’s entirely your nation’s own choice on how to allocate and spend the insurance funds… there are no encumbrances on how and when you choose to apply them.
Placing a Stamp on Progressive Leadership
When disaster occurs and citizens require the most from the government, you have earned heart-felt gratitude from the general populous on the forethought, planning and rapid response mechanisms that were put in place to aid and recover.
“The insurance payout from PCRIC has substantially improved our financial capacity to respond swiftly to the most pressing needs of those affected by the cyclone.”
Honorable Pohiva Tu’ionetoa, former Minister of Finance – Tonga