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

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

Welcome to the first edition of Snapshots for 2013!

It's taken us a while but we've finally been able to get something together to give you some understanding of the work being undertaken by the SPC/SOPAC Disaster Reduction Programme. These are just tidbits of a wider range of initiatives, the developments of which, we hope to share with our readers over the course of 2013.

The year has gotten off to a bang but unfortunately not the kind that we would have wanted. The disasters that affected both Samoa and Fiji as a result of Tropical Cyclone Evan in December required some immediate attention early in January. Through a collaborative effort with the SPC/SOPAC Water and Sanitation Programme, we deployed two staff to assist Samoa's post disaster needs assessment . In February, we provided similar assistance to Fiji (just coming to completion as this goes to print so watch this space for news on the Fiji post disaster needs assessment). We also, per the tireless contribution of Litea Biukoto, were able to support post disaster assessment work in the Solomon Islands which was impacted by an earthquake and  tsunami in early February.

So, there's been no let up this - made even more interesting since other activities continue as scheduled. Alas, such is the life of those of us in this line of work. We have a number of interesting stories in this edition. The Pacific Disaster Net has reached a significant milestone; our work in French Polynesia is making significant progress; the B Envelope project continues to add another success to its portfolio of activities, and more.

I hope you enjoy reading our stories and please 'stay tuned' for more as we progress in the coming months.

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Mosese Sikivou
Deputy Directory, Disaster Reduction Programme