SPC Geoscience Division

Home News & Media Releases Latest Pacific Catastrophe Risk Insurance Pilot Launched

Pacific Catastrophe Risk Insurance Pilot Launched

E-mail Print PDF

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

Federated States of Micronesia (FSM) is reviewing its disaster response in the wake of the three typhoons which hit the country between April and May this year.

 

The review, which involves representatives from the four states of FSM and partners, including the Secretariat of the Pacific Community (SPC) and the European Union, is part of the Second FSM Disaster Risk Management Platform being held in Yap State between 8 and 12 June, 2015.

 

In April this year, typhoon Maysak severely impacted Chuuk and the outer islands of Yap. This was followed by typhoon Noul , which hit the main island of Yap. Typhoon Dolphin caused heavy damage on Kosrae and Pohnpei in May.

 

The Second FSM Disaster Risk Management Platform is funded by the European Union, as part of the Building Safety and Resilience in the Pacific Project, implemented by SPC.

 

The forum is being led by the respective state disaster coordinating officers, and assisted by staff of the Weather Service Office and Red Cross.