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Pacific Catastrophe Risk Insurance Pilot Launched

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Pilot program to help governments respond to natural disasters

The Marshall Islands, Samoa, Solomon Islands, Tonga and Vanuatu are all part of a pilot catastrophe risk insurance programme launched on January 17, 2013 to provide their governments with immediate funding if a major (natural) disaster occurs.

Japan, the World Bank and the Secretariat of the Pacific Community (SPC) have teamed up with the 5 Pacific Island Countries to launch the Pacific Catastrophe Risk Insurance Pilot. It will test whether a risk transfer arrangement modelled on an insurance plan can help Pacific island nations deal with the immediate financial effects of disasters.

The pilot relies on state-of-the-art financial risk modelling techniques and is the first ever Pacific scheme to use parametric triggers, linking immediate post-disaster insurance payouts to specific hazard events.  This joint effort will allow Pacific island nations to access earthquake and tropical cyclone catastrophe coverage from reinsurance companies at an attractive price.
The World Bank will act as an intermediary between the pilot countries and a group of insurance companies selected through a competitive bidding process – Sompo Japan Insurance, Mitsui Sumitomo Insurance, Tokio Marine & Nichido Fire Insurance and Swiss Re. The underlying risk modelling for the transaction is being provided by AIR Worldwide.

The Pacific Catastrophe Risk Insurance Pilot is part of the Pacific Catastrophe Risk Assessment and Financing Initiative (PCRAFI), a joint initiative of the World Bank, SPC, and the Asian Development Bank with financial support from the Government of Japan, the Global Facility for Disaster Reduction and Recovery (GFDRR) and the European Union.  

PCRAFI was launched in 2007 and aims to provide Pacific Island Countries with disaster risk assessment and financing tools to enhance their broader disaster risk management and climate change adaptation agenda.

FURTHER INFORMATION:
http://pcrafi.sopac.org

Last Updated on Wednesday, 06 February 2013 11:31  

Newsflash

Over the next three months, a seven-member team will conduct an independent external review of the Secretariat of the Pacific Community (SPC).

The review, beginning the first week of February, will consider SPC in the context of its broader role in regional development. The team will examine SPC’s focus, governance, management, mode of delivery, financing and performance monitoring and make recommendations on the organisation’s core business; governance, decision-making and membership; organisational structure; strategic planning; priority setting; business practices; financial management; resources; and performance monitoring and assessment.

When it approved the terms of reference for the review at the 7th Conference of the Pacific Community held in November last year, SPC’s governing body noted the timeliness of the exercise in light of the recent integration of SOPAC (Pacific Islands Applied Geoscience Commission) and SPBEA (Secretariat of the Pacific Board for Educational Assessment) into SPC.

SPC Director-General Dr Jimmie Rodgers said, "This will be an organisation-wide review that is independent of SPC. It will consider SPC’s core business and other important issues such as general governance and organisational efficiency."