The Pacific Catastrophe Risk Insurance Company (PCRIC) has renewed its policy portfolio for 2024, introducing redesigned parametric insurance products developed in collaboration with global experts.
These updates include innovative enhancements to PCRIC’s earthquake, tsunami, and tropical cyclone products, as well as expanded protection for excess rainfall across the Pacific region.
The redesigned portfolio integrates advanced risk modelling and strengthened engagement with global reinsurance markets, offering greater accessibility and broader protection for Pacific Island governments.
Key contributions from global experts include advisory services, product structuring, and reinsurance brokerage from WTW, advanced earthquake and tsunami modelling from Temblor, tropical cyclone modelling from Reask, and excess rainfall modelling from JBA Risk Management. The World Bank provided advisory support and funding for risk modelling.
Richard Poulter, Chief Risk Officer at PCRIC, noted, “Our new products for tropical cyclone, earthquake, tsunami, and excess rainfall were all designed to meet the needs of our member countries.”
He added, “Following extensive discussions with country representatives, we now have products which are more transparent, easier to understand, and more directly people-centred, better reflecting the on-ground needs after a severe disaster event. We look forward to expanding the product range in 2025 to include additional perils, further increasing the financial protection we provide to Pacific nations.”
The redesigned products utilise advanced hazard models that improved engagement with global reinsurance markets, resulting in better pricing, expanded reinsurance panels, and enhanced coverage.
Simon Young, Senior Director of Disaster Risk Finance at WTW, remarked, “These industry-leading models allowed for robust interaction with the reinsurance markets. The improved risk transfer pricing and the expansion of the panel of reinsurers for PCRIC set a strong foundation for greater insurance access and increased coverage levels for Pacific governments.”
Ross Stein, CEO of Temblor, commented, “Almost 20% of the world’s quakes affect the Pacific Islands, making them especially vulnerable. The modelling adopted new shaking and tsunami event sets which allow for parametric insurance triggered by people impacts, not just financial losses. Collaborating with our partners enriched our understanding of how science can better serve those in need.”
David Schmid, Global Head of Data Products at Reask, explained, “Our goal at Reask is to deliver comprehensive tropical cyclone risk modelling that reaches even the most remote islands, exactly when they need it. By incorporating the latest climate data into our models, we offer up-to-date hazard insights in a changing world. Our real-time, high-resolution wind fields contribute to the novel people-focused parametric insurance solution through the use of machine learning on a combination of climate and proprietary data sets.”
Hubert Bast, Technical Director at JBA Risk Management, said, “We were delighted to collaborate on this vital project which enables all PCRIC member countries to access valuable insurance coverage for the substantial financial impact of excess rainfall in the region. Our people-based exposure dataset offers a realistic representation of the typical coastal bias in the distribution of communities within Pacific Islands, and our hope is that this model will open up more opportunities for regional governments to secure appropriate coverage for the specific risks they face in regard to excess rainfall.”
Ralph Van Doorn, Lead Economist and Program Leader, Pacific islands and Papua-New Guinea at The World Bank, stated, “Through the Pacific Catastrophe Risk Assessment and Financing Initiative, we are proud to be assisting Pacific governments strengthen their disaster resilience and better protect local communities.”
