The Pacific Catastrophe Risk Insurance Company (PCRIC) has signed a grant agreement for EUR 2.5 million under the Global Shield Solutions Platform (GSSP), managed by Frankfurt School of Finance & Management. This vital support will enable PCRIC to address key challenges in expanding Climate Disaster Risk Financing and Insurance (CDRFI) solutions across Pacific Island Countries.

In light of the increasing impact of climate change, marked by an increase in the intensity and frequency of climate disasters worldwide, Pacific Island Countries are experiencing a persistent rise in climate-related losses and damages. These islands are particularly vulnerable to adverse events such as tropical cyclones, droughts, and excess rainfall, which can profoundly affect their populations, economies, and natural environments.

GSSP and PCRIC announced the signing of a grant agreement under the Global Shield Programme for Resilient Regional Risk Pools (GSRRP) with a strategic focus on education and product development. Considering the findings of the study on Optimisation Options for Risk Ceding and Retention conducted by WTW (NASDAQ: WTW), and commissioned by the GSSP,  there is significant need to enhance the technical capacities of Regional Risk Pools. The measures requested by PCRIC in their Request for CDRFI Support represent an important element in addressing the identified needs.

This was indeed a pleasing development for PCRIC on the sidelines of the COP29 meetings. On behalf of PCRIC, I wish to thank the GSSP for this valuable show of support for our work in the Pacific region. Equally important was enhancing local capacity in the area of CDRFI which directly contributed to better-informed disaster risk management decisions, and a higher level of pre-disaster preparedness. This grant marks another key step in the strategic partnership between GSSP and PCRIC

Mr. Aholotu Palu, CEO, PCRIC 

The grant will support two primary areas of PCRIC’s work:

  • Education:
    PCRIC will partner with local universities to deliver CDRFI courses, supported by scholarships and internships. These programmes will embed knowledge within governments of Pacific Island States, ensuring CDRFI principles are integrated into national disaster risk strategies. Technical and vocational training courses, modelled after successful regional programmes, will further enhance capacity building.
  • Product Development:
    PCRIC plans to expand its Risk Information Platform and develop new products.  Additionally, lessons from the successful parametric insurance product for Papua New Guinea’s state-owned enterprise, PNG DataCo. Limited, will guide the development of sector-specific solutions for resilience building. Operational contingency plans will also be strengthened to ensure payouts reach vulnerable populations effectively.

The GSSP funding represents a critical step toward enhancing climate and disaster risk resilience in the Pacific and catalyses the offer of PCRIC as a regional risk pool to the benefit of its member states.  

This partnership with PCRIC underscores GSSP’s commitment to empowering vulnerable communities in the Pacific through innovative and impactful solutions. By investing in education and product development, we aim to strengthen the technical capacities of regional risk pools and support the creation of tailored Climate Disaster Risk Finance and Insurance products that address the unique challenges of Pacific Island Countries. This grant is a testament to our shared vision of fostering resilience against increasing climate risks and sustainable development across the region.

Dr. Annette Detken, Head of GSSP