| Project Detail |
The project development objective is to improve access to post-disaster rapid response finance to Pacific Island Countries. Components Establishment and Operations of PCRIC and PCRIF Capitalization of PCRIC Institutional Capacity Building on Disaster Risk Finance and Insurance Development of Disaster Risk Insurance Products Monitoring and Evaluation Project Description 11. The project consists of five components for execution by four recipients. These include (i) establishment and operations of the PCRIC and the PCRIF; (ii) Capitalization of the PCRIC; (iii) Institutional Capacity Building on Disaster Risk Financing and Insurance; (iv) Development of Disaster Risk Insurance Products; and (v) Monitoring and Evaluation. It will be executed by the Pacific Catastrophe Risk Insurance Company (PCRIC), the Pacific Catastrophe Risk Insurance Foundation (PCRIF), Secretariat of the Pacific Community and the Pacific Islands Forum Secretariat. 12. Component 1. Establishment and Operations of the PCRIC and the PCRIF (US$1.3 million): Provision of technical and financial support for establishment and operations of the PCRIC and the PCRIF, including inter alia professional service fees, registration fees audit costs, executive recruitment firm and other related fees, in order to: (i) Provide disaster and climate-related risk insurance for the Beneficiary Countries; (ii) Improve affordability of high quality sovereign catastrophe risk transfer associated with earthquakes and climate-related events. 13. Component 2. Capitalization of the Pacific Catastrophe Risk Insurance Company (PCRIC) (US$20.1 million): This component supports the capitalization of the PCRIC through two sub components as follows; a. Shareholder capital of the PCRIC: Financing to the Foundation to subscribe share capital in the PCRIC (US$0.1 million). The provision of a minimum shareholder capital of NZ$100,000 was a condition of the Captive insurance license for the PCRIC stipulated by the FSC and ensures compliance with the Captive Insurance Act 2013. The PCRIC must hold the capital amount set by the FSC. However, the Constitution set this amount to be higher and issued one share with a value of US$100,000. Note that as the payment for such share subscription has already been made, the Grant funding under this sub-component will be used by the Foundation to reimburse the pre-financing of such payment. |
