Tonga has received a further insurance payout from the Pacific Catastrophe Risk Insurance Company (PCRIC) after early action triggers were activated under the country’s parametric drought insurance policy.
The TOP78,981 (US$33,978) payout, announced on Thursday, will support drought preparedness measures in the islands of Ha’apai and Tongatapu before conditions become more severe.
The payment is made under Tonga’s parametric drought cover, with premiums funded through the Global Shield Solutions Platform (GSSP).
A multi-donor grant facility, GSSP helps climate-vulnerable countries in developing rapid disaster financing mechanisms, including insurance and emergency funding.
“The latest payout underscores the value of GSSP-funded premium support in making disaster risk insurance more accessible to Pacific Island countries,” the PCRIC said.
The payment follows a similar payout made last month after prolonged rainfall shortages in May affected communities in Tonga’s Niua island group.
PCRIC provides participating Pacific governments with parametric insurance products that use pre-agreed triggers to release funds rapidly following eligible disaster events.
In April, the insurer approved an ex gratia payment of FJ$1.2m (US$546,240) to Fiji to support recovery from Category 4 Tropical Cyclone Vaianu.
More recently, the Asian Development Bank and the Government of Japan launched a new disaster risk financing partnership with PCRIC aimed at providing rapid insurance payouts to Pacific governments following natural disasters.
