The World Bank has announced the start of the fifth round of Pacific Catastrophe Risk Assessment and Financing Initiative (PCRAFI) Insurance, along with the recent establishment of a new Cook Islands-based insurance company, called the PCRAFI Facility, which will deliver this innovative and competitive insurance.
The Facility has issued its first insurance policies to the Cook Islands, Marshall Islands, Tonga, Samoa and Vanuatu, which will be complemented by reinsurance provided by Sompo Japan Nipponkoa Insurance, Mitsui Sumitomo Insurance, Tokio Marine & Nichido Fire Insurance, Swiss Re, and Munich Re via its subsidiary NewRe – securing Pacific Island countries total coverage of US$38.2 million against tropical cyclones, earthquakes and tsunamis. World Bank Treasury played an integral role in securing participating Pacific Island countries competitive rates from the international reinsurance market.
“We are pleased the PCRAFI Facility has been established to assist in providing Pacific Island countries with insurance coverage against tropical cyclones and earthquakes,” said Cook Islands Minister of Finance and Economic Management Hon. Mark Brown.“We look forward to the Facility growing and developing additional products to help us better meet our post-disaster financial needs in the Pacific region.”
The Facility will receive US$6 million in capital in its first year of operation from the PCRAFI Multi-Donor Trust Fund – with the World Bank as Trustee – with funding support from Germany, Japan, the United Kingdom, and the United States, and building on the more than US$40 million in grant funding the four donors have provided to Pacific Island countries under the G7 InsuResilience Initiative.
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