Pacific Insurance and Climate Adaptation Programme

Partner: Munich Climate Insurance Initiative 

Countries: Fiji, Solomon Islands, Samoa, Tonga, Papua New Guinea and Vanuatu


Pacific Island Countries are particularly vulnerable to extreme weather events. These events often lead to loss of income and productive potential, lost or damaged assets, and threatened livelihoods. Sometimes injury or death are the result. Serious events force the affected individuals who are typically those on low-incomes to use a variety of coping strategies that include: Reducing food consumption, taking children out of school as parents can no longer afford to pay school fees, borrowing money, taking money out of their retirement fund and selling assets.

These strategies diminish people’s ability to maintain or improve their wellbeing and economic prospects, and ability to cope with future climate change impacts. As a result, there is a growing need to explore more meaningful and sustainable options for managing and transferring risks associated with natural catastrophes for example that are being exacerbated by climate change.


The Pacific Financial Inclusion Programme (PFIP), in partnership with the Munich Climate Insurance Initiative (MCII) conducted a scoping activity in February 2019 to explore the possible implementation of a climate risk adaptation and insurance programmes in the Pacific region. The scoping study investigated the vulnerability profiles of representative livelihoods in the Pacific as well as evaluated the feasibility of introducing disaster risk financing tools such as index-based insurance in the region. Based on the results of this scoping study, PFIP and MCII are now assessing opportunities to set up the Pacific Insurance and Climate Adaptation Programme (PICAP), to respond to the growing needs for financing solutions for natural catastrophes in the region.

PICAP will aim to federate all Southern Pacific states into a regional sovereign risk pool in order to offer quick financial assistance after natural catastrophes through insurance at a more affordable rate. In addition, PICAP will aim at increasing Pacific Island’s disaster risk management activities and overall resilience through improved disaster risk financing and the development of innovative market-based insurance products for the middle and lower income groups.

The scoping and feasibility study across six countries and the explorations to set up PICAP are supported by the UNDP administered Disaster Resilience in the Pacific small island developing states (RESPAC). 

About Munich Climate Insurance Initiative

The Munich Climate Insurance Inititave is a leading innovation laboratory on climate change and insurance. MCII is recognized among governments and policy processes like UNFCCC, ISDR´s Hyogo Framework, and in humanitarian work on climate risk management. MCII is a node among practitioners and scholars for innovative uses of risk transfer tools to manage climate risks. 

MCII pioneers concepts through its extensive expert network advocating for new ways of applying insurance to complement risk management and adaptation. Secondly, MCII tests risk transfer tools in ‘lighthouse’ projects and provides proof of concept and implementation models for further replication. MCII feeds its results back to governments and decision makers, affecting regulations and enhancing international aspiration and standards. To provide this cutting-edge professional expertise, MCII works closely with private sector insurers and insurance associations, governments and regulators, delegates to UN policy processes, UN agencies and regional bodies, and scholars & practitioners of risk management and adaptation.


The Regional Disaster Resilience in the Pacific Small Island Developing States (RESPAC) is a UNDP-Russia funded partnership that works with partners, the private sector and governments to strengthen climate early warning systems and climate monitoring capacity, enhance preparedness and planning mechanisms and tools to manage disaster recovery processes, and increase the use of financial instruments to manage and share disaster related risk and fund post disaster recovery efforts.