The UK Government Actuary’s Department (GAD) has joined forces with the Centre for Disaster Protection (CDP) to enhance the financial resilience of the Pacific Catastrophe Risk Insurance Company (PCRIC), helping improve disaster risk insurance systems for Pacific Island nations vulnerable to natural hazards.
The initiative focuses on reinforcing the insurer’s regulatory framework and refining its long-term financial planning, ensuring it remains capable of providing reliable support when disasters strike.
Regulatory Framework Reviewed to Improve Oversight
One of the key areas of the collaboration involved reviewing proposed prudential regulations that will guide PCRIC’s operations under the supervision of the Financial Supervisory Commission (FSC) of the Cook Islands.
GAD and CDP provided technical advice on draft rules covering solvency capital requirements, corporate governance standards, and risk management practices. The recommendations are expected to support PCRIC’s formal submission to the Cook Islands regulator as it moves toward implementing an updated regulatory framework.
Financial Modelling Enhanced for Future Stability
In addition to regulatory work, GAD carried out a comprehensive assessment of PCRIC’s financial projection model. The review was designed to strengthen the insurer’s ability to forecast future funding needs, improve long-term financial planning, and ensure adequate resources are available to respond to increasingly frequent and severe natural disasters.
The enhanced modelling is intended to help PCRIC maintain financial sustainability while continuing to offer affordable disaster risk insurance products to Pacific Island governments.
Supporting Disaster Preparedness Before Emergencies Occur
The Centre for Disaster Protection works internationally to help governments prepare financially for disasters before they happen, enabling faster and more effective responses when emergencies occur. PCRIC complements that mission by providing accessible and dependable disaster risk insurance solutions tailored to the needs of Pacific Island countries, many of which face significant climate-related risks.
Together with GAD’s actuarial expertise, the partnership aims to improve the resilience of disaster financing across the region.
Actuaries Combined Expertise Across Organisations
The project brought together actuarial specialists from multiple organisations. GAD collaborated with Richard Poulter, who served as Chief Risk Officer at PCRIC during the project, and Amar Patel, Risk Finance Advisor at the Centre for Disaster Protection.
Their combined technical expertise helped evaluate both regulatory proposals and financial models designed to strengthen the insurer’s long-term resilience.
Officials Highlight Importance of International Cooperation
Nam Le, an actuary at GAD, described the collaboration as an opportunity to contribute to improving protection for communities increasingly affected by the growing frequency and severity of natural disasters linked to the climate crisis.
He said working closely with partner organisations allowed specialists to combine their expertise and deliver practical, effective advice that would strengthen disaster preparedness across the Pacific.
Amar Patel also praised the partnership, saying the shared commitment among actuaries to protecting people and livelihoods had helped reinforce PCRIC’s financial resilience. He added that the collaboration would help ensure Pacific communities continue to benefit from strong and dependable financial support when disasters occur.
