Tuvalu has joined the Pacific Catastrophe Risk Insurance Company (PCRIC) as its 13th member country and secured cyclone insurance coverage, strengthening its financial protection against one of the most significant climate-related risks facing the country. The coverage has been made possible through premium subsidy support from the Global Shield Solutions Platform (GSSP), helping Tuvalu access affordable disaster risk financing.

By joining PCRIC, Tuvalu gains access to regional risk pooling and parametric insurance solutions designed to provide rapid and predictable financial support following qualifying disasters. Pooling risks across Pacific Island countries can help smaller economies access more affordable coverage and international reinsurance capacity than would typically be available through individual arrangements.

Tuvalu’s Minister of Finance said: “Joining PCRIC and securing cyclone coverage is a major step forward for Tuvalu. It provides certainty and speed when disasters strike, and we are deeply thankful to our donors, particularly the Global Shield Solutions Platform, for their financial support. This arrangement responds to our long-standing call for accessible and timely disaster financing. We encourage continued investment in these mechanisms, which are critical to protecting vulnerable communities and reducing the impacts of disasters.”

The cyclone policy provides immediate protection, while work is already underway to develop a tailored drought insurance product for Tuvalu, expected to be available in early 2027. This phased approach allows the country to strengthen financial protection against multiple climate-related hazards over time.

Tuvalu’s membership further strengthens the regional risk pool and expands collective capacity to manage climate and disaster risks across the Pacific. Through premium support and financial protection solutions, GSSP contributes to making risk financing more accessible to climate-vulnerable countries and supporting stronger resilience to future shocks.