Pacific Insurance and Climate Adaptation Programme (PICAP)

Project Overview

Pacific Island Countries are particularly vulnerable to extreme weather events. These events often lead to loss of income and productive potential, lost or damaged assets, and threatened livelihoods. Sometimes injury or death are the result. Serious events force the affected individuals who are typically those on low-incomes to use a variety of coping strategies that include: Reducing food consumption, taking children out of school as parents can no longer afford to pay school fees, borrowing money, taking money out of their retirement fund and selling assets. These strategies diminish people’s ability to maintain or improve their wellbeing and economic prospects, and ability to cope with future climate change impacts. As a result, there is a growing need to explore more meaningful and sustainable options for managing and transferring risks associated with natural catastrophes for example that are being exacerbated by climate change.

In February 2019 a scoping study was conducted by MCII and the Pacific Financial Inclusion Programme (PFIP) to explore the possible implementation of climate risk adaptation and insurance progammes in the Pacific region. The scoping study investigated the vulnerability profiles of representative livelihoods in the Pacific as well as evaluated the feasibility of introducing disaster risk financing tools such as index-based insurance in the region. Based on the results of this scoping study, the Pacific Insurance and Climate Adaptation Programme (PICAP) was created in order to respond to the growing needs for financing solutions for natural catastrophes in the region.

PICAP aims to federate all Southern Pacific states into a regional sovereign risk pool in order to offer quick financial assistance after natural catastrophes through insurance at a more affordable rate. In addition, PICAP has the objective to increase Pacific Island’s disaster risk management activities and overall resilience through improved disaster risk financing and the development of innovative market-based insurance products for the middle and lower income groups. This programme is headed by PFIP and MCII. Each country will have the programme tailored to their specific needs with the work streams and activities defined together with the local governments.

Latest Project Updates

  • Find out more about the newly launched research collaboration between USP, UWI, UNU-EHS, PFIP and MCII Opens internal link in current windowRead more

  • Read our latest Press Release about the opportunities for setting up a climate adaptation and risk in surance programme in Papua New Guinea, Samoa, and the Solomon Islands Initiates file downloadRead More
  • Check out the Press Release “Pacific Regional Climate Risk Adaptation and Insurance study underway” Opens internal link in current windowRead more



Our Project Partners

MCII partnered with the Pacific Financial Inclusion Programme (PFIP). PFIP is a Pacific-wide programme that has helped over two million Pacific islanders gain access to financial services and financial education. It achieves these results by funding innovation with financial services and delivery channels, supports policy and regulatory initiatives, and the empowerment of consumers. It is jointly administered by the UN Capital Development Fund (UNCDF) and the United Nations Development Programme (UNDP) and receives funding from the Australian Government, the European Union and the New Zealand Government. PFIP operates from the UNDP Pacific Office in Suva, Fiji and has offices in Papua New Guinea, Samoa and Solomon Islands.

To find out more about PFIP, please visit the Opens external link in new windowPFIP website


Contact us by e-mail: mcii(at)