The Pacific Catastrophe Risk Insurance Company (PCRIC) has made two separate cyclone payouts, one being an ex-gratia payment of FJD 1.2 million (US $545,000) to the Government of Fiji following tropical cyclone Vaianu, and a $500,000 payout to the Government of the Solomon, after its parametric insurance policy was triggered by cyclone Maila.
“While the event did not meet the parametric thresholds required to trigger Fiji’s insurance policy, it came close,” the insurer explained in a LinkedIn post.
Given the scale of hardship that affected citizens have experienced from the event, PCRIC affirmed that it is pleased to be in a position to consider the merits of extending this ex-gratia support.
PCRIC also said the decision reflects its role in disaster risk financing in the Pacific region, demonstrating its commitment to support member countries in times of need when they face acute shocks and require immediate assistance.
PCRIC’s payment is intended to aid the Government of Fiji as it manages fiscal pressures associated with emergency response across the island. The payment will also be used to support the restoration of essential services and community recovery following the event.
As mentioned, PCRIC has also paid $500,000 to the government of the Solomon Islands after its parametric insurance policy was triggered by recent tropical cyclone Maila.
The event affected an estimated 73,000 people nation-wide and inflicted significant damage to homes and public buildings in the Western, Choiseul and Isabel Provinces in particular.
Funds from PCRIC will be utilised to offset relief expenditures undertaken by the government to support those impacted by the event. The payment will also be used to ease pressure on the nation’s finances that have been imposed by the cyclone.
PCRIC said that cyclones arriving late in the season have been a stark reminder of the disaster risks to which communities can be exposed to across the region.
“Commitment to a pre-arranged funding safety net like the parametric insurance policy taken out by the Solomon Islands government is proving to be an astute inclusion in disaster readiness plans,” PCRIC explained.
