By Henry Gale
March 10 - (The Insurer) - Cyclone Rae's passage through the South Pacific in February triggered a payout on a parametric insurance policy covering coral reef systems around Fiji's Lau Islands.
The Pacific Catastrophe Risk Insurance Company (PCRIC) initiated the $45,000 payment to marine conservation NGO the Vatuvara Foundation on March 3, according to a PCRIC LinkedIn post. This was eight days after the cyclone passed close to the reef. The funds will be used for reef restoration works that are set to begin soon.
The policy, first announced in February 2024, was supported by mining company BHP through social investment funds and placed by WTW and local broker Insurance Holdings (Pacific) Pte Ltd. Its total coverage limit is $450,000.
Modelling firm Reask acted as the calculation agent for the policy. PCRIC said that Reask had forecasted payout probabilities several days ahead of time, and determined after the event that a 10% payout would be due.
Vatuvara Foundation is the first NGO client of regional risk pool PCRIC, which also provides parametric natural catastrophe insurance to national governments and utility companies in the Pacific. In December, PCRIC paid $1.2 million to the government of Vanuatu after its parametric insurance policy was triggered by a 7.3 magnitude earthquake.
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