Pacific Regional Climate Risk Adaptation and Insurance study underway

Tonga, 18 February 2019

The MCII Team has engaged with the Pacific Financial Inclusion Programme (PFIP) on conducting a scoping study in Vanuatu, Fiji and Tonga.

The goal is to develop appropriate disaster risk financing mechanisms and corresponding implementation plans, including: suitable index-based insurance products covering the risk profiles identified, reinsurance coverage, insurance distribution arrangements, etc.

MCII Team members are currently in the region conducting a series of consultations with a variety of stakeholders, incl. government ministries, meteorological departments, national disaster management agencies, local insurance companies, commercial banks, regulators, civil society organizations, donors, development partners and the private sector.

 

The scoping study underway has been supported by the Russian Federation funded UNDP Regional Disaster Resilience in the Pacific Small Island Developing States (RESPAC) Programme.

PFIP hopes to develop index-based insurance products to meet the needs of Pacific Islanders. By providing immediate relief for damages and losses of income caused by extreme weather events, climate risk insurance helps individuals break out of a vicious circle of poverty and vulnerability. Increasing people’s ability to manage, as well as to mitigate their vulnerability to climate hazards through insurance can significantly reduce communities and individuals’ recovery times, build resilience and contribute to long-term social and economic well-being.

Read the full Press Release Initiates file downloadhere.