Prime Minister Sitiveni Rabuka has stressed the importance of strengthening risk insurance as a key mechanism for a country that is highly exposed to natural disasters.

To support this, he signed an agreement between the Fiji Government and the Pacific Catastrophe Risk Insurance Company to establish the company in the region and provide support to the nation.

Rabuka says natural disasters are becoming more frequent and intense due to climate change, and therefore innovative financing mechanisms, instruments, and tools are needed.

The Prime Minister says Fiji will work with partners such as PCRIC to listen to and respond to Pacific priorities, while strengthening and amplifying Pacific leadership on global climate action.

“You probably know that the Cabinet approved the Cabinet paper that came up with this proposal, and I am comfortable sitting here and ready to sign with the backing of the Cabinet of Fiji.”

Rabuka adds the initiative will strengthen disaster resilience and protect lives.

Pacific Catastrophe Risk Insurance Company CEO Aholotu Palu says approval for PCRIC to operate from Fiji marks the first regional organization providing rapid financial protection against natural disasters in the Pacific.

“Our ambition is to extend coverage to all 14 Pacific Island countries within the next two years, given that we are established by the leaders. Donor partners have been instrumental, providing US$36 million in start-up capital, in addition to about US$17 million for premium financing, education, and product development under a single joint grant agreement with the Global Shield Solutions Platform.”

He adds that they are awaiting additional capital from Japan through the Asia development Bank, which will further strengthen PCRIC’s disaster risk coverage, with an announcement expected at the ADB Annual Meeting in May 2026.

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