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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

Science Technology and Resources (STAR) Network 2012 Annual Meeting
5 November 2012
Secretariat of the Pacific Community, Noumea

Chair of STAR, Professor John Collen,
Director General of the SPC, Dr Jimmie Rodgers
Director of IRD, Dr Gilles Fediere
Members of the STAR scientific and technical network
Friends

I have great pleasure in being here today to be a part of the 29th Annual Science Technology and Resources Network Meeting, and to become freshly-acquainted with such a prestigious body that has a deep history of engagement and service to the Region.  

I’m honoured to address you today – and in conjunction with the Second Meeting of the SPC Applied Geoscience and Technology Division, tomorrow.      

The Cook Islands itself has had the opportunity to host two STAR annual meetings – first in 1986 and again in 1995.  To the STAR veterans out there – and I’m told there’s four of you – who had the earlier experience of meeting in Rarotonga, I say ‘Kia Orana’ to you.  

And to those, who have not yet had the pleasure, I’ll see what I can do to help arrange one of your forthcoming gatherings in the Cook Islands.

I think by now you may have heard that we ‘showered’ the Pacific Leaders with an unforgettable experience during the Pacific Islands Forum – and Dr. Rodgers I’m sure – will attest to what was a major highlight of the year for us as hosts.  

It would be pleasing for me to see you all in Rarotonga next time, should we have the opportunity to host your annual meeting.

Manihiki Farmer

In just two short years, I’ve had a challenging time as Leader, and the thought often hits me that: I’m a long way from my former life as a farmer back in Manihiki – our Northern Group atoll renowned for its black pearls.