Tonga has received a record insurance payout of $3.5 million from the Pacific Catastrophe Risk Insurance Company (PCRIC) following the destruction caused by Cyclone Gita.
PCRIC is a captive insurance company owned by the Pacific Catastrophe Risk Insurance Foundation, which is directed by participating Pacific Island countries.
The payout was based on insurance cover against tropical cyclones purchased by the government of Tonga, one of five Pacific Island countries that purchased catastrophe risk from PCRIC.
Cyclone Gita, which formed on 3 February 2018 and dissipated 19 days later, reached its peak intensity as a category four cyclone before making landfall on Tonga and causing widespread damage largely due to destructive wind strength.
Funds were transferred seven days after the cyclone, providing the government with rapid-response financing to support disaster-relief efforts and effective service delivery to the affected areas.
David Traill, PCRIC CEO, suggested recent events highlighted the importance of having coordinated disaster management capability across the Pacific region.
Traill said: “Despite the tragic circumstances, we are proud to have been able to provide rapid funding to the Tongan government seven days after Gita making landfall which will provide immediate support to help meet the needs of local communities.”
He added: “It is clear that the increased level of coverage provided to Pacific Island countries through the establishment and capitalisation of PCRIC by our donor partners has made a positive impact on the support we are able to deliver to the Pacific Island region.”
