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Pacific Catastrophe Risk Insurance Company (PCRIC) CEO, Aholotu Palu

SPOTLIGHT ON PCRIC CEO, AHOLOTU PALU

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

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