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CelsiusPro, in partnership with Risk Frontiers, has been commissioned by the World Bank and by the Pacific Catastrophe Risk Insurance Company (PCRIC) to assess the feasibility of excess rainfall and drought insurance in order to protect the Pacific Island Countries from extreme weather events.
The Swiss insurtech company CelsiusPro specializes in providing parametric insurance solutions and advisory services to mitigate the risks of adverse weather and natural disasters. Based on CelsiusPro’s extensive track record in designing and implementing extreme weather and natural catastrophe insurance schemes worldwide, the World Bank and Pacific Catastrophe Risk Insurance Company (PCRIC) have charged CelsiusPro with the tasks of performing a feasibility study for rainfall and drought insurance, as well as designing corresponding insurance product options for up to fourteen countries in the Pacific region.
As part of the Pacific Catastrophe Risk Assessment and Financing Initiative (PCRAFI), PCRIC provides catastrophe insurance to Pacific Island Countries (PIC) for events such as tropical cyclones, earthquakes, and tsunamis. These countries are especially vulnerable to climate risks and natural disasters including intense rainfall and drought. Due to the small geographic size of PICs, extreme weather events may affect large parts of a country, crippling entire economies. In April 2020, for example, when category five tropical cyclone Harold hit Vanuatu, the Solomon Islands, Fiji and Tonga, its hurricane-force winds with heavy rainfalls had a devastating impact and led to flash floods in lowlying areas. Thanks to the cyclone insurance with PCRIC, the Government of Tonga received a pay-out of USD 4.5million to support response and recovery efforts.
Sarah Jane Wild, Chairman for PCRIC, says: “The aim of the feasibility study is to give the PICs access to heavy rainfall and drought insurance, thereby expanding the financial protection for their economies and communities.” Lea Mueller, Head of Consulting at CelsiusPro, says: “We are very pleased to be working closely with the World Bank and the Pacific Catastrophe Risk Insurance Company. CelsiusPro has an in-house database of all relevant climate data worldwide, including the recently released Global Precipitation Measurement (GPM IMERG). Using GPM IMERG and our broad experience in developing and structuring insurance solutions, we support the development of an insurance policy covering heavy rainfall and drought insurance for the Pacific Islands.”
To deliver solutions under this mandate, CelsiusPro has partnered with Risk Frontiers, an Australia based company specializing in the assessment and management of risk across the Asia-Pacific region. Both companies combine extensive experience in catastrophe risk modelling and designing financial products to increase climate resilience. This helps communities and businesses both adapt to the risks they are facing and then improve their disaster response and recovery plans in an effective and efficient manner.