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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

Majuro, September 6, 2013 - This afternoon, the United States and the Republic of Kiribati signed a boundary treaty delimiting the waters between their two countries. The boundary treaty was signed on behalf of the United States by Ambassador Frankie A. Reed and, for the Republic of Kiribati, by President Anote Tong. The treaty was signed in Majuro, Marshall Islands, in connection with the Pacific Islands Forum.

During the signing ceremony Ambassador Reed said, “This maritime boundary treaty with Kiribati further highlights that the U.S. is a pacific nation.  We look forward to deepening our already strong relationship with Kiribati here at the Forum and in November, during the 70th anniversary of the Battle of Tarawa.”

She added, “The negotiations leading up to this important moment were extremely cordial, productive, and efficient, and the U.S. team extends its appreciation to Kiribati’s representatives for the manner in which the two negotiating teams were able to work together in a spirit of collaboration.  It was truly a pleasure to work together with Kiribati on this important endeavor.”

President Tong said, “The signing of this Maritime Boundary Delimitation Agreement between the Government of the United States of America and my country signify the vital importance of clearly establishing the national limits of jurisdictions under the 1982 United Nations Convention on the Law of the Sea (UNCLOS).