The Pacific Catastrophe Risk Insurance Company (P.C.R.I.C), which was established a year ago, is providing US$45 million (T$108m) in insurance cover for five Pacific Island countries for the coming cyclone season, Radio New Zealand reports.
The five countries are Samoa, Cook Islands, the Marshall Islands, Tonga, and Vanuatu.
The company, which is owned by the Pacific Island countries, was set up after states saw a need for a mechanism to protect their people from increasing climate and seismic risks.
It provides a regional catastrophe insurance platform offering cover that can be paid out within 10 days of a triggered event, so governments have access to immediate liquidity for disaster response
Established in June 2016, P.C.R.I.C. is a result of region-wide efforts to address climate and disaster risks across 14 P.I.Cs.
Catastrophe risk insurance for P.I.C.s began as a pilot insurance program from 2013 to 2015 through the Pacific Catastrophe Risk Assessment and Financing Initiative (PCRAFI), which laid the foundation for the P.C.R.I.C. to offer government’s affordable parametric insurance. PCRIC is a captive insurance company owned by the Pacific Catastrophe Risk Insurance Foundation (P.C.R.I.F.), which is directed by participating P.I.C.s.
“In 2015, Pacific Island Countries called for a regional mechanism to help governments protect their people from increasing climate and seismic risks.
Within one year, the Pacific Catastrophe Risk Insurance Company (P.C.R.I.C.) was established…offering parametric insurance for tropical cyclones and earthquakes that quickly payout to governments,” said Lavea Tupaimatuna Iulai Lavea, Chair of Council of Members, Pacific Catastrophe Risk Insurance Foundation (P.C.R.I.F.). He is also the Chief Executive Officer of the Ministry of Finance.