Pacific Insurance and Climate Adaptation Programme (PICAP)
December 2018 - June 2020 | Fiji, Vanuatu, Solomon Islands, Papua New Guinea
Individuals, cooperatives, MSMEs, and governments vulnerable to natural catastrophes
To federate Pacific states to establish a regional climate risk adaptation, finance, and insurance facility targeting the macro, meso, and micro level that are vulnerable to climate risk and natural catastrophes.

Project Overview

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.

In February 2019 a scoping study was conducted by MCII and the Pacific Financial Inclusion Programme (PFIP) to explore the possible implementation of climate risk adaptation and insurance progammes 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, the Pacific Insurance and Climate Adaptation Programme (PICAP) was created in order to respond to the growing needs for financing solutions for natural catastrophes in the region.

PICAP aims 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 has the objective to increase 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. This programme is headed by PFIP and MCII. Each country will have the programme tailored to their specific needs with the work streams and activities defined together with the local governments.

Our Project Partners

MCII partnered with the Pacific Financial Inclusion Programme (PFIP). PFIP is a Pacific-wide programme that has helped over two million Pacific islanders gain access to financial services and financial education. It achieves these results by funding innovation with financial services and delivery channels, supports policy and regulatory initiatives, and the empowerment of consumers. It is jointly administered by the UN Capital Development Fund (UNCDF) and the United Nations Development Programme (UNDP) and receives funding from the Australian Government, the European Union and the New Zealand Government. PFIP operates from the UNDP Pacific Office in Suva, Fiji and has offices in Papua New Guinea, Samoa and Solomon Islands.

To find out more about PFIP, please visit the PFIP WEBSITE

Latest Project Updates

Call for Proposals: Feasibility for parametric insurance modelling in the Pacific

In the context of our joint programme with UNU-EHS, UNCDF and UNDP, the UNDP Pacific Office in Fiji is seeking for qualified companies/firms to submit a proposal for a Feasibility Study for Parametric Models in the Pacific.

Find out more information about the request for proposals, here.

We would like to invite interested organizations to submit their proposals! This work will help us determine what types of parametric insurance products can be developed for the Pacific region. If there are any questions regarding the RFP, please reach out to

Find out more about the newly launched research collaboration between USP, UWI, UNU-EHS, PFIP and MCII

Small island countries in the Caribbean and the Pacific face unrelenting challenges associated with climate change. In order to facilitate South-South collaboration and research on climate and disaster risk finance and insurance solutions to these challenges, MCII is teaming up with the University of the South Pacific, the University of the West Indies, the United Nations University Institute of Environment and Human Security, and the Pacific Financial Inclusion Programme to launch the Climate Risk Insurance Research Collaboration (CRIRC).

MCII will lead the collaboration, which will carry out research on the ground in the Caribbean and Pacific Islands and produce academic and policy publications.

For more information, please see the CRIRC press release HERE

Read our latest Press Release about the opportunities for setting up a climate adaptation and risk in surance programme in Papua New Guinea, Samoa, and the Solomon Islands
Check out the Press Release “Pacific Regional Climate Risk Adaptation and Insurance study underway”

The MCII Team has engaged with the Pacific Financial Inclusion Programme (PFIP) on conducting a scoping study in Vanuatu, Fiji and Tonga.

The goal is to develop appropriate disaster risk financing mechanisms and corresponding implementation plans, including: suitable index-based insurance products covering the risk profiles identified, reinsurance coverage, insurance distribution arrangements, etc.

MCII Team members are currently in the region conducting a series of consultations with a variety of stakeholders, incl. government ministries, meteorological departments, national disaster management agencies, local insurance companies, commercial banks, regulators, civil society organizations, donors, development partners and the private sector.

The scoping study underway has been supported by the Russian Federation funded UNDP Regional Disaster Resilience in the Pacific Small Island Developing States (RESPAC) Programme.

PFIP hopes to develop index-based insurance products to meet the needs of Pacific Islanders. By providing immediate relief for damages and losses of income caused by extreme weather events, climate risk insurance helps individuals break out of a vicious circle of poverty and vulnerability. Increasing people’s ability to manage, as well as to mitigate their vulnerability to climate hazards through insurance can significantly reduce communities and individuals’ recovery times, build resilience and contribute to long-term social and economic well-being.

Read the full Press Release HERE.