SOPAC - Applied Geoscience and Technology Division - SPC

  • Increase font size
  • Default font size
  • Decrease font size
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

Nadi, August 7, 2012: After three years of hard work Pacific Island countries are starting to deliver significant results under a regional project that was set up to address some of the most challenging water and sanitation issues in the Pacific.

The Global Environment Facility (GEF) funded Pacific Integrated Water Resources Management (IWRM) Project was launched in 12 countries in 2009 to protect vital watersheds, manage wastewater and sanitation, assess and protect water resources, and improve water efficiency and safety. The benefits of the work are now starting to be felt in the region.

“When we started out water and sanitation issues were dealt with sectorally, with agencies only focusing on their small part of a bigger problem and not communicating or working together in a coordinated and efficient manner,” Marc Wilson, Regional Project Manager for the GEF Pacific IWRM Project, said. “By demonstrating an integrated approach through tangible on-the-ground activities, we’ve seen a change in that. Not just in the localised area of the demonstration project but in many countries nationally, and also regionally.”

“For example in the Nadi Basin there was little consultation or long-term strategic planning between different sectors but the establishment of the Nadi Basin Catchment Committee (NBCC) has changed that. We now have all the key players around the same table discussing and making decisions on water management and flood reduction strategies and the Fiji Government is looking at replicating this model in other important catchments like Ba,” Mr Wilson said.