The Pacific Catastrophe Risk Insurance Company (PCRIC) has approved an ex gratia payment of FJ$1.2m (US$546,240) to the Government of Fiji to support the country’s recovery from the impact of Category 4 Tropical Cyclone Vaianu, which caused widespread disruption across the country’s Western Division.
Cyclone Vaianu passed close to the western coasts of Fiji, causing displacement of people and damage to property between 6 April and 8 April. According to the International Federation of Red Cross and Red Crescent Societies (IFRC), 1,360 people were affected and 1,284 were displaced.
“While the event did not meet the parametric thresholds required to trigger Fiji’s insurance policy, it came close,” the insurer said in a LinkedIn post.
In light of the scale of impacts experienced by affected communities, PCRIC said it considered the merits of extending ex gratia support to help address urgent relief and early recovery needs.
The payment is intended to help the Fijian government manage fiscal pressures associated with emergency response efforts and support the restoration of essential services and community recovery following the cyclone.
PCRIC said the decision reflects its role in disaster risk financing in the Pacific region, demonstrating its commitment to support member countries in times of need.
Cyclone Vaianu made landfall over New Zealand’s Bay of Plenty on 12 April, prompting the declaration of regional states of emergency in Northland and Waikato, with further local states of emergency in Hawke’s Bay and Whakatane.
Vaianu drew comparisons to Cyclone Gabrielle, which struck in February 2023 and generated around NZ$890m in insured claims across roughly 40,000 policies.
