Pacific Ocean Finance Programme – Insurance (POFPI)
Federated States of Micronesia ; Fiji ; Kiribati ; Marshall Islands ; Nauru ; Palau ; Samoa ; Solomon Islands ; Tonga ; Tuvalu ; Vanuatu – Pacific
Project leader : Willis Towers Watson
Dates : N/A
Classification
Risks
Solutions
Actors
Costs
N/A
Summary
The Pacific Ocean Finance Program is implemented by the Pacific Islands Forum Fisheries Agency (FFA) and the Office of the Pacific Ocean Commissioner (OPOC), with funding from the World Bank and the Global Environment Facility. The insurance workstream of the Pacific Ocean Finance Programme (POFPI) project focused on the feasibility and design of insurance instruments to support Pacific Ocean health and thereby increase the resilience of Pacific communities. As part of this project, Willis Towers Watson conducted a Pacific-wide ocean risk assessment and feasibility analysis for the use of insurance instruments and developed three novel insurance concepts with initial product design in Fiji, Palau, and Vanuatu. These insurance concepts integrate parametric insurance coverage for blue infrastructure (e.g. coral reefs and mangroves) from climate shock events, i.e. acute threats (e.g. storms) and chronic threats (e.g. increasing ocean temperatures), and the design of a livelihood protection product to support fisherfolk resilience.
Actions
The insurance workstream of the Pacific Ocean Finance Programme (POFPI) project focused on the feasibility and design of insurance instruments to support Pacific Ocean health and thereby increase the resilience of Pacific communities. As part of this project, Willis Towers Watson conducted a Pacific-wide ocean risk assessment and feasibility analysis for the use of insurance instruments and developed three novel insurance concepts with initial product design in Fiji, Palau, and Vanuatu. These insurance concepts integrate parametric insurance coverage for blue infrastructure (e.g. coral reefs and mangroves) from climate shock events, i.e. acute threats (e.g. storms) and chronic threats (e.g. increasing ocean temperatures), and the design of a livelihood protection product to support fisherfolk resilience.
Outcomes
An especially valuable element of this project was the large component of local consultation, during which insurance concepts were presented and feedback from key stakeholders sought. Entities engaged included: Pacific Island governments (across ministries of finance, planning, foreign affairs, environment, fisheries), local and international conservation NGOs, and development partners.
Innovative financial instruments are most effective when they also incentivize hazard mitigation and adaptation activities.
Insurance can be effectively deployed to protect existing investments in conservation and marine environment stewardship.
Partners
Technical partners: Pacific Islands Forum Fisheries Agency (FFA), the Office of the Pacific Ocean Commissioner (OPOC), Global Environment Facility (GEF)
Financial partners: World Bank, GEF