Page 25 - IB March 2025

P. 25

Workshop on Climate and Disaster The cost of DRF initiatives was a keenly considered the nation’s financial management of and resilience
to climate-related disasters.
issue as delegates emphasised the struggle many
Pacific nations face in addressing the competing
demands placed on already stretched financial Strategies to mitigate the financial impact of
Risk Finance in the Pacific resources. Critical questions were raised as to who disasters are no longer just a ‘nice-to-have’
option for governments. This applies also to many
should bear the burden of ensuring truly vulnerable state owned enterprises upon which communities
island nations had reasonable access to available and economies depend for essential services.
Supported by the UK’s Centre for Disaster Protection (CDP) in 2024 and the World Bank (GFDRR) in 2025, DRF tools. How much could realistically be covered Commercial insurers have left significant market
PCRIC has co-hosted two seminal workshops addressing climate and disaster risk financing in the Pacific. by governments, and how much could or should gaps which must be filled, and the financial impact of
Directed at regional disaster risk management practitioners, these workshops have drawn in both regional be supported through donors, specialised regional stalled social and economic development is quickly
and global expertise to showcase options and transfer knowledge and know-how essential for building local
capacity and guiding governments along the pathway to affordable, sustainable and effective strategies for
addressing the financial cost of disaster impact.
The following article gives insight to the workshop held recently in Fiji, pointing to the future of DRF
initiatives in the Pacific Islands region and the role insurance has as an effective disaster risk financing tool.

Regardless of the climate debate, it is an by Tuvalu on the status of its DRF planning made an
undeniable fact of life in our region that disasters— out-sized impact, effectively demonstrating that size
cyclones, floods, tsunamis, earthquakes, and and wealth did not determine a country’s ability to
volcanic eruptions—are happening with no decline act. The nation’s clear, well-developed risk financing
in frequency, and many have been more intense plan forcefully highlighted that regardless of scale,
than ever. The past decade has given us some of every island nation of the region can develop a viable
the most devastating events in Pacific history, and disaster risk financing strategy with the right level of
has demonstrated that most nations are still not focused commitment and support.
fully equipped to handle them well. To change this, Perhaps nothing over the 5 days resonated louder via a collective open-mouthed silence than when participants saw how much
there must be better data, stronger coordination, Institutionalisation of strategic DRF planning is a coverage they could receive for such a reasonable (subsidised) premium.
an influx of financial resources, and long-term must if governments are to sustain momentum and
strategic planning. To reduce the negative financial secure the progress already made. Establishing long- funds, or international finance institutions? The becoming too great to defer any longer. This is where
impact on local economies, Pacific nations ‘must’ term policy frameworks, the creation of dedicated DRF absence of clear-cut answers reinforced the entities like PCRIC now play a pivotal role in the larger
strengthen their disaster response capacity before working groups, and structured funding allocations complexity of the matter, and accentuated the matrix of DRF solutions.
the next major crisis strikes. that prevail beyond leadership changes were all pressing need for development of sustainable Ongoing progress in the DRF space is assured
promoted as mechanisms governments can adopt mechanisms to ensure nations of the region did if the level of collaboration between governments,
The lack of accurate and up-to-date exposure and not forever remain under-protected and perpetually
vulnerability data is one of the biggest challenges to securely anchor DRF planning and implementation reliant on reactive, ad hoc postdisaster aid. donors, and service providers exhibited throughout
facing provision of cost-optimised disaster risk capabilities within overarching national disaster risk the 5-day workshop is continued. The workshop
financing across the region. Without robust data, management strategies. Approaching DRF support as an investment acted to demonstrate and mobilise the collective
the correct pricing of risk becomes difficult, and rather than an expense was posed as a necessary ambition of delegates to be part of tangible DRF
premiums tend to be higher as a result. Regional A powerful realisation registered with workshop mindset change to deliver more proactive post- solutions which are workable in the context of the
cooperation to improve data collection and share participants when informed that for 2024/25 season, disaster assistance. Donor investment in tools and Pacific Islands.
PCRIC clients had secured a collective total of
outputs was promoted as a strategic means of mechanisms which facilitate effective pre-planning
reducing uncertainty and thereby helping to lower US$52.75 million in pre-arranged post-disaster and remove uncertainty in moments of crisis stood In relation to climate change and disaster resilience,
it is often said that time is running out for the most
costs and improve access to more affordable DRF financial relief. With premium costs substantially offset out as the smarter way. Tuvalu’s experience was
solutions. through PCRIC by financial support from donors, again referenced, having received substantial vulnerable of nations. It being well understood
and payouts received within as little as 14 days of a external support in establishment of a national that the region’s island nations simply do not have
Though levels of preparedness vary between trigger event occurring, pre-arranged solutions were Climate Change and Disaster Survival Fund. the resources to go it alone, perhaps time is also
nations, progress is evident in regional disaster shown to be available, accessible, and affordable Highlighting what was possible through a proactive running out for the global family of wealthier nations
risk finance planning. Some nations have made now. No longer an abstract concept, but a tangible approach, it was only days after the workshop that to collectively water the green shoots of hope made
significant strides, while others still face political, solution offering real, immediate financial support Tuvalu coincidentally received a second tranche of evident through this timely and well-executed regional
technical, and financial hurdles. The presentation when needed most. funding from the World Bank, specifically targeting DRF workshop.