Niue secures parametric cyclone cover with PCRIC
Niue secures parametric cyclone cover with PCRIC | Insurance Business New Zealand
Catastrophe & Flood
Niue secures parametric cyclone cover with PCRIC
Government also took part in a council of members meeting in October
Catastrophe & Flood
By
Kenneth Araullo
In a strategic move to bolster its disaster resilience, Niue has secured parametric insurance coverage facilitated by the Pacific Catastrophe Risk Insurance Company (PCRIC), aligning with other Pacific nations in a collective push for enhanced fiscal safeguarding against natural calamities.
The negotiation groundwork was laid in August at the Forum Economic Ministers Meeting (FEMM) in Suva, where Niue’s Finance Secretary, Doreen Siataga, engaged in dialogue with PCRIC. The team at PCRIC took the opportunity to elucidate the merits of their financial protection services designed to mitigate disaster-related losses.
Subsequently, Niue’s commitment was finalised with the submission of a commitment letter, following which the island nation also joined the PCRIC Council of Members meeting in Morocco this October, albeit as an observer.
Under the terms of the policy, Niue is assured of prompt financial relief should a cyclone strike with intensity exceeding the predetermined thresholds. The swift disbursement of funds – targeted within 10 days post-disaster – aims to empower the Niuean government to allocate resources effectively toward relief, recovery, or fortifying future resilience.
“The PCRIC board and management team thank the government of Niue for trusting PCRIC to be their key partner in offering financial protection against disasters for their nation. As our membership grows, we endeavour to secure more premium support funding to support our member countries in the future. It is hoped that more regional nations will partner with PCRIC and choose readiness, not regret,” PCRIC CEO Aholotu Palu said.
The official signing of the PCRIC parametric insurance policy was conducted by Secretary of Government Peleni Talagi on Niue’s behalf. This move underscores a pivotal shift towards consolidating disaster risk financing mechanisms and fortifying regional resilience.
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