The Vatuvara Foundation Fiji, in collaboration with WTW and Fiji-based broker, Insurance Holdings (Pacific) Pte Ltd., has selected the Pacific Catastrophe Risk Insurance Company (PCRIC) to administer a new parametric insurance solution designed to provide rapid payout after a tropical cyclone damages the reef.
NGO, the Vatuvara Foundation, is committed to protecting Fiji’s ocean, empowering local communities, and inspiring young ocean advocates.
This inaugural coral reef insurance policy is for Fiji’s Lau Group of islands, which is recognized as one of the most susceptible and remote areas globally, and was developed and introduced by PCRIC’s collaboration partner, WTW.
The innovative parametric solution aims to offer rapid payouts after a tropical cyclone damages the reef. It covers costs for reef cleanup, restoration, and community aid to address both food and water security concerns resulting from storm damage.
The signing of the policy between PCRIC and the Vatuvara Foundation marks the PCRIC’s first non-sovereign policy to protect the Lau Group’s reefs from climate impacts. It is also the first policy that PCRIC has issued that has a specific focus on the impact of disasters on nature.
The Fijian Government supported PCRIC, providing an official letter of support for issuing this specialized policy, aligning with PCRIC’s mission to enhance disaster resilience in its member countries.
This initiative paves the way for PCRIC to develop innovative new policies to protect coral reefs and other natural assets. Niue, one of PCRIC’s newest member countries, has already expressed interest in protecting Beveridge Reef which lies approximately 250 kilometres off the coast of the island country, according to reports.
The rise in sea levels, warming of the oceans, acidification, and the growing occurrence of tropical cyclones pose significant threats to coral reefs. These challenges jeopardize the livelihoods of the indigenous communities in the Lau region, who rely on the reef ecosystem for sustenance and economic stability.
Aholotu Palu, Chief Executive Officer, PCRIC, commented, “PCRIC is proud to showcase its dedication to supporting non-sovereign entities through pioneering parametric insurance offerings. This initiative aligns with PCRIC’s core mission of aiding Pacific Island countries in enhancing disaster resilience and facilitating swift access to financial resources.
“The commendable efforts of the Vatuvara Foundation, spanning reef conservation and community empowerment, have earned recognition from the Fijian Government for their alignment with national interests and developmental goals. These efforts resonate with Fiji’s Blue Pacific Strategy, as well as its commitments to climate change adaptation and disaster risk mitigation.”
