The Pacific Catastrophe Risk Insurance Company (PCRIC), a donor funded entity established to provide Pacific Island nations with access to disaster risk insurance and related services, has made a payout of $285,000 under the tsunami component of its parametric insurance policy to Samoa due to a tsunami warning that was issued following the magnitude 8.8 earthquake that struck off the coast of Russia on July 30th, 2025.
PCRIC stated that providing parametric insurance solutions and quick financial assistance following such natural events, is crucial in helping Pacific Island nations like Samoa build resilience against the intensity of disasters, while helping communities respond to immediate needs.
The payout was processed within ten days, aligning with PCRIC’s goal.
Lautimuia Afoa Uelese Vaai, Minister of Finance, Samoa, stated, “Amid such natural disasters, the financial protection provided by PCRIC is invaluable. It is a testament to the Government’s proactive approach in preparing for the impacts of climate change by having the disaster risk financing policy in place for Samoa. We are greatly appreciative of PCRIC’s partnership, which strengthens our climate and disaster risk financing priorities and allows us to respond promptly to our people in times of crisis.
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He continued, “This payout exemplifies the power of climate and disaster financial tools like PCRIC’s to make a tangible difference and affirms the importance of risk pooling and proactive financial preparedness in the face of increasing climate and natural hazards. I strongly encourage other Pacific members that have yet to join, to also partner with PCRIC, to ensure they are better prepared for the increasing risks brought on by changing climates.”
Aholotu Palu, Chief Executive Officer, PCRIC, added, “We are deeply saddened by the impacts caused by the tsunami and extend our heartfelt support to the people of Samoa. On November 1st 2024, the Government of Samoa purchased a comprehensive disaster insurance policy from PCRIC covering multiple risks, including tropical cyclones, excess rainfall, earthquakes, and tsunamis.
“Due to their anticipatory action, this swift payout, processed within 10 days, demonstrates PCRIC’s critical role as a regional institution. We provide timely climate and disaster risk financing that directly supports the government’s relief efforts and enables rapid recovery. In their efforts to return to normalcy, this payout will assist in mobilising resources quickly to rebuild and restore affected communities in the wake of such events.”
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