Prime Minister ‘Aisake Eke met with Pacific Catastrophe Risk Insurance Company (PCRIC) CEO, Aholotu Palu, in Nuku’alofa to discuss enhancing Tonga’s disaster risk financing strategy.
During the meeting, Eke emphasized the need to increase coverage limits on Tonga’s existing disaster policies, highlighting the importance of securing greater financial protection against disasters.
“To this end, the PM tasked himself with identifying additional sources for support with the resulting higher policy premiums that would be paid,” PCRIC said in a statement.
Palu updated the Prime Minister on World Bank-funded efforts to develop drought coverage products and ongoing discussions with Tonga Cable Limited and other state-owned enterprises about tailored policies to protect critical infrastructure.
Eke also expressed interest in PCRIC’s role in capacity building through collaborations with institutions like USP, while acknowledging his position as Pacific Islands Forum Chair to encourage regional engagement with PCRIC.
The meeting also recognized PCRIC’s rapid response to the December earthquake in Vanuatu, which delivered disaster funds within 14 days. This demonstrated the effectiveness of parametric insurance in supporting recovery efforts.
Palu also met with caretaker Finance Minister Hon. Tiofilusi Tiueti to reaffirm PCRIC’s commitment to innovation in disaster policy solutions.