World Video | Defence | Foreign Affairs | Natural Events | Trade | NZ in World News | NZ National News Video | NZ Regional News | Search


Next Climate-Related Insurance Round Open for Pacific

Next Climate-Related Insurance Round Open for Pacific Island Countries

The Pacific Catastrophe Risk Insurance Company anticipates a ten-fold increase in premium volume for catastrophe risk insurance it provides to Pacific Island Countries in its sixth season of coverage.

THE COOK ISLANDS, October 17, 2017 – The upcoming insurance season for the Pacific Catastrophe Risk Insurance Company (PCRIC) anticipates a ten-fold increase in premium volume for climate- and seismic-related insurance it provides to Pacific Island Countries. Beginning November 1, 2017, catastrophe risk insurance policies will provide governments coverage against tropical cyclones, earthquakes and tsunamis throughout the year.

PCRIC, a regional catastrophe insurance platform dedicated to the provision of parametric insurance for climate and seismic hazards for Pacific Island Countries (PICs), is designed to quickly give cash payments within 14 days of a triggered event, giving governments immediate access to rapid-response emergency funds. Based on extensive data collection and analyses across the region, catastrophe risk models were developed for 15 PICs by AIR Worldwide – a global leader in catastrophe risk assessments and the key agent that provides independent event reporting. PCRIC, which is owned and directed by participating Pacific Island Countries, is a captive insurance company of the Pacific Catastrophe Risk Insurance Foundation (PCRIF).

“In 2015, our community of Pacific Island Countries called for a regional mechanism to help governments protect people and assets from increasing climate and seismic risks. Within one year, the Pacific Catastrophe Risk Insurance Company (PCRIC) was launched as a regional platform for countries to address climate and seismic hazards, offering parametric insurance for tropical cyclones and earthquakes to quickly payout to governments. PCRIC is actively pursuing new parametric insurance products to meet the priority needs in the region such as excess rainfall and drought.”

Mr. Lavea Tupaimatuna Iulai Lavea, Chair of Council of Members, Pacific Catastrophe Risk Insurance Foundation (PCRIF)

Launched in June 2016, PCRIC is a result of region-wide efforts to address climate and disaster risks among 14 Pacific Island Countries. Its roots start from pilot insurance program that ran from 2013-2015 that was part of the Pacific Catastrophe Risk Assessment and Financing Initiative (PCRAFI), which laid the foundation for a sovereign catastrophe risk pool that offers affordable parametric insurance. During the pilot phase, parametric insurance policies were issued to six participating countries, covering both tropical cyclones and earthquakes/ tsunamis. Two rapid payouts were made to Tonga and Vanuatu, both within 14 days of a triggered event, providing proof of concept for a regional insurance mechanism that provides governments an immediate injection of cash to fund emergency and disaster response.
At the 2015 Forum Economic Ministers’ Meeting (FEMM), the Ministers of Finance made a collective decision to create the PCRAFI Facility to manage disaster and climate risk finance at the regional level. Ministries of Finance called upon partners for financial and technical assistance to establish a regional facility and capacity building on climate and disaster risk finance, which is supported by the PCRAFI Program and implemented by PCRIC, the Pacific Community (SPC), Pacific Island Forum Secretariat (PIFS), and the World Bank Group’s Disaster Risk Finance and Insurance Program (DRFIP).

To design a regional risk portfolio for the reinsurance market, regional hazard information and national exposure data was aggregated over three years using the open-source geospatial database – Pacific Risk Information System (PacRIS). This provided the requisite inputs to develop a robust catastrophe risk model and produce risk profiles for 15 countries. Using the country risk profiles to create a regional risk pool, a catastrophe insurance program was piloted from 2013-15 among six participating PICs (the Cook Islands, the Marshall Islands, Samoa, the Solomon Islands, Tonga, Vanuatu). From this experience, ministers of finance agreed that pooling risk across all PICs was the most efficient and cost-effective means to design a sovereign insurance mechanism for climate- and seismic-related hazards.

© Scoop Media

World Headlines


Palestinian Ministry of Health: Developments In The Health Situation During The Israeli Aggression On The Cities & Governorates Of The Gaza Strip
For the second day in a row, the Israeli aggression against the Gaza Strip continues by targeting overcrowded residential areas and neighborhoods, as the death toll rose to 13 citizens, including a 5-year-old girl and a 23-year-old woman... More>>

UN: Horn Of Africa Faces Most ‘Catastrophic’ Food Insecurity In Decades, Warns WHO

The World Health Organization (WHO) warned on Tuesday that the Greater Horn of Africa is experiencing one of the worst famines of the last 70 years... More>>

FAO: Warns 90 Per Cent Of Earth’s Topsoil At Risk By 2050
A full 90 per cent of the Earth’s precious topsoil is likely to be at risk by 2050, according to the UN Food and Agriculture Organization, FAO...

Somalia: ‘We Cannot Wait For Famine To Be Declared; We Must Act Now’
Rising acute food insecurity in Somalia has caused more than 900,000 people to flee their homes in search of humanitarian assistance since January last year, the Food and Agriculture Organization (FAO) has warned... More>>

UN: American West Faces Water And Power Shortages Due To Climate Crisis
Two of the largest reservoirs in the United States are at dangerously low levels due to the climate crisis and overconsumption of water, which could affect water and electricity supply for millions in six western states and Mexico, the UN Environment Programme (UNEP) warned on Tuesday... More>>

Singapore: UN Experts Call For Immediate Moratorium On Executions For Drug Offences

UN experts* today condemned the execution of Nazeri Bin Lajim, a 64-year-old Malay Singaporean national convicted of drug offenses and urged the Government of Singapore to halt plans to execute individuals on death row for drug related charges... More>>