Many of the region’s leaders, past and present, rose from very humble beginnings. In that respect, Pacific Catastrophe Risk Insurance Company (PCRIC) CEO, Aholotu Palu, is no different. He attributes his modest upbringing in Tonga and his family’s firsthand experience with the dramatic impact of cyclones and other natural disasters in his home country as having a profound influence on the path he has pursued in later life. Looking back, it’s not hard to understand the determination he shows today in endeavouring to ensure the island nations of the Pacific have every opportunity to build and sustain their resilience to the financial and social impacts of devastating natural and climate-induced disasters.
Educated in economics, public administration, and international development, Palu found fertile ground for developing a deep understanding of the many challenges faced by government through roles held in Tonga’s Ministry of Finance and the Prime Minister’s Office over the course of almost 20 years. Directly engaged in the complexity of some of the most pressing domestic and regional issues of the day, he leveraged the wisdom and experience of others to develop essential skills in influence and diplomacy, and learned the true value of adopting a patient, strategic approach to achieving high-conviction objectives. Little did he know at the time just how well this would augur for the position he holds today.
With formidable expertise in public policy analysis, banking and investment, public sector finance, and sovereign loan negotiations, Palu was eventually drawn to opportunities beyond Tonga. He filled positions with the World Bank Group and the German development agency GIZ before taking up a role in the Pacific Islands Forum Secretariat (PIFS). As the premier institution of advocacy on behalf of the Pacific Islands region, the time with PIFS did much to consolidate Palu’s policy and technical knowledge and connections with decision-makers throughout the region. It enabled him to develop an astute understanding of the specific context of each member nation’s needs and priorities, whilst at the same time crystallising the common threats and challenges faced. Among these, the escalating social and financial impact of increasingly frequent weather and seismic disasters resonated deeply.
Stirred by a desire to drive meaningful change and reverse the escalating toll of disaster, it was a dream come true when Palu secured the role of CEO with regional disaster risk finance (DRF) organisation, the Pacific Catastrophe Risk Insurance Company (PCRIC). Born out of a World Bank initiative to provide a degree of protection against the financial impact of catastrophic natural disasters, PCRIC stands as an independent, regionally focused disaster risk insurer. The business model is premised upon the practical reality that small individual nations need immediate financial support in the event of a disaster. However, rarely do they have the technical or financial means by which to secure affordable insurance coverage to offset even part of the costs they incur. With no appropriate mechanism provided by the private sector, governments and communities stand highly vulnerable to irrecoverable loss and protracted delays in the delivery of essential services and reinstatement of key infrastructure post-disaster. PCRIC addresses this by consolidating the exposure of each nation into a single pool of risk, thereby creating scale. This is leveraged to secure far better pricing and terms from the global insurance market than is possible by a single nation acting independently.
Since assuming the role of CEO, Palu has wasted no time in establishing his team-centric leadership style and imprinting his vision for the future of PCRIC, all the while championing a corporate culture of service. He sees enormous potential for PCRIC to have a quantum impact throughout the region, both by delivering real solutions to the financial burden of natural disasters and by contributing to the development of local capability to better plan and manage disaster risk. “There is no doubt that we must continue to seek support from international external expertise for now, but I am determined to do all I can through PCRIC to foster the development of local knowledge and expertise, supporting the emergence of local disaster risk specialists, so that from within the region, we can in time become masters of our own future, leveraging our intimate local knowledge for even better long-term disaster recovery and resilience outcomes.”
When asked about his accomplishments as CEO of PCRIC, Palu was quick to emphasise that any credit for the achievements of PCRIC rests with the team of staff and advisors supporting him. “By myself, my contribution could only ever be regarded as modest. But by nurturing the best in each team member, emphasising innovation, and challenging the status quo, together, we have achieved an enormous amount of good for the region in disaster risk financing, especially in the post-COVID years. But there is so much more to be done. I keep reminding myself that at the end of the day, we are not dealing with risk and finance. Ultimately, we are dealing with the safety and well-being of communities and individuals who live in one of the most disaster-prone regions on earth.”