The Pacific Catastrophe Risk Insurance Company (PCRIC) has made its first-ever payout to an NGO client, Fiji’s Vatuvara Foundation, under a parametric insurance policy following the impact of tropical cyclone Rae.
The Vatuvara Foundation’s policy with PCRIC reportedly provides coverage for tropical cyclone risk affecting a highly valued coral reef in the Northern Lau Group of Islands, Fiji.
Any payout is thus designated for reef clean-up and restoration efforts, as well as community livelihood support in the aftermath of a disaster.
“As tropical cyclone Rae tracked southward across the Lau Islands as a Category 2 tropical cyclone in late February, PCRIC’s post-event loss calculation process was triggered,” PCRIC explained.
Reask, the official Calculation Agent for the policy, determined that a payout equivalent to 10% of the coverage limit was warranted. PCRIC subsequently initiated the payment on Monday, March 3, just eight days after the cyclone passed close to the reef.
Katy Miller, Director of the Vatuvara Foundation, commented on payout, “PCRIC has delivered entirely in accordance with the detail of our policy. There have been no complex processes or delays we’ve had to address. Payment arrived within 14 days of the event occurring – it is so gratifying that in our time of need, we have such a reliable partner in our resilience endeavours.”
PCRIC CEO Aholotu Palu also emphasised the effort invested in tailoring PCRIC products to client needs, noting that this event validated the policy design and processes.
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