Parametric insurance for SOEs
THE Pacific Catastrophe Risk Insurance Company (PCRIC) will be investing in the design of parametric insurance solutions to cover state-owned enterprises and nongovernment oraganisations.
A PCRIC team met this week with Energy Fiji Ltd (EFL) chief executive officer Hasmukh Patel and the EFL management team as part of its scoping exercise into this market.
“In addition to sharing the technical details of the government’s coverage against tropical cyclone and flood/excess rainfall risks, PCRIC also presented an example policy recently designed for a state-owned enterprise in the Pacific region, and explained how parametric insurance can provide a solution for the protection of critical assets which are considered uninsurable by traditional insurers,” PCRIC chief executive officer Aholotu Palu said in a statement yesterday.
“The PCRIC team highlighted that one of its core mandates is to build the resilience of Pacific island countries against natural disaster risks, and providing protection for the assets of SOEs and key sectors of the economy plays an important part in achieving this goal.”
He said given the difficulties many SOEs face in insuring their assets through traditional insurance offered by the private sector, PCRIC stands ready to design parametric products for public utilities such as EFL, for the benefit of PCRIC’s member countries.
PCRIC, with headquarters in Cook Islands, is owned by Pacific island countries that are members of the PCRIC council, which include Fiji, Tonga, Samoa, Cook Islands, Marshall Island, Vanuatu and Niue.
The PCRIC team recently held a series of bilateral meetings in Suva, where it met with permanent secretary for Ministry of Disaster Management Isoa Talemaibua and senior officials at the National Disaster Management Office to brief them on the tropical cyclone and flood/excess rainfall parametric insurance policies purchased by the Fiji Government in November last year.
The PCRIC team highlighted that one of its core mandates is to build the resilience of Pacific island countries against natural disaster risks
– PCRIC chief executive officer Aholotu Palu