FIJI and the Pacific Catastrophe Risk Insurance Company (PCRIC) have signed a Host Country Agreement, paving the way for PCRIC to officially operate from Fiji.
The signing ceremony brought together Fiji’s Prime Minister, Sitiveni Rabuka, and PCRIC Chief Executive Officer, Aholotu Palu, in a show of regional solidarity and commitment to addressing the growing impact of natural disasters.
Rabuka spoke candidly about the urgent need for financial safeguards amid increasingly frequent and severe disasters driven by climate change.
“We must have insurance. Disasters will get more frequent and more intense. Therefore, we need innovative financing mechanisms and tools in place,” he said.
Rabuka emphasized the importance of risk insurance as a vital tool for protecting lives and livelihoods, highlighting Fiji’s full support for PCRIC’s regional mission.
Palu described the occasion as a historic milestone, marking Fiji as the first regional hub for the organization dedicated to providing rapid financial protection against national disasters in the Pacific.
“This innovative instrument ensures countries can access quick cash to support immediate relief following disasters,” Palu said.
Established in 2015 by Pacific finance ministers, PCRIC provides sovereign parametric insurance to help countries absorb financial shocks from natural disasters.
Initially supported by the World Bank, PCRIC now operates independently and continues to expand its reach, aiming to cover all 14 Pacific island countries within the next two years.
Donor partners have contributed over $USD36 million in starting capital, with further support on the horizon.
Palu highlighted Fiji’s role as an active client, holding a cyclone policy with PCRIC for the past two years, and announced the forthcoming launch of a scholarship program in 2026 to build local expertise in disaster risk finance.
He also noted that formal recognition of PCRIC as an international organization would elevate disaster preparedness and the unique needs of Pacific island nations on the global stage.
Both leaders expressed hope that the agreement will serve as a springboard for greater collaboration, improved disaster resilience, and stronger climate leadership across the Pacific.