With premium support from the Global Shield Solutions Platform (GSSP), the Pacific Catastrophe Risk Insurance Company (PCRIC) has delivered a fifth drought payout to the Government of Tonga this year under the country’s drought coverage. The payout was presented to the Honourable Minister of Finance, Sivoki Lavemaau, and will support early action in response to the ongoing drought conditions affecting ‘Eua.

The payout was triggered by insufficient rainfall in August 2026, at a time when El Niño conditions continue to heighten climate-related pressures across the Pacific. It highlights the value of pre-arranged financial protection in enabling governments to access rapid liquidity when climate shocks affect communities, livelihoods, and essential services.

PCRIC’s CEO emphasised that parametric risk can provide fast and predictable payouts that empower countries such as Tonga to respond decisively in protecting communities and livelihoods. He further noted that Tonga’s drought policy coverage is undergoing renewal for the upcoming policy year, set to begin on November 1, 2026, ensuring continued protection against future climate risks.

The support provided through GSSP has helped make this coverage more affordable and accessible, easing fiscal pressure while strengthening Tonga’s resilience.

Hon. Minister Lavemaau expressed appreciation for PCRIC’s ongoing partnership and the support of GSSP, highlighting that pre‑arranged finance is not only a tool for immediate relief but also a cornerstone of Tonga’s long‑term resilience strategy in the face of climate change.