PNG DataCo and PCRIC Launch Groundbreaking Parametric Insurance for Submarine Fibre Optic Cables
Port Moresby, PNG, May 19, 2024 – The Pacific Catastrophe Risk Insurance Company (PCRIC) and PNG DataCo have announced the signing of an innovative parametric insurance policy designed to deliver rapid payouts following earthquakes that damage the submarine fibre optic cable network around Papua New Guinea (PNG).
PNG DataCo, a state-owned enterprise (SOE) responsible for the national transmission network, including the crucial submarine fibre optic cables, sought this unique insurance solution in the absence of suitable coverage from the private sector. PCRIC, in collaboration with leading advisory, broking, and risk solutions firm WTW, developed this bespoke product after extensive research and analysis.
The new insurance coverage will shield PNG DataCo from the financial burdens of earthquake-related damages, enabling swift responses to any disruptions and ensuring the continuity of vital communication services. This initiative also enhances PNG’s disaster resilience and underscores the importance of effective risk management for critical infrastructure.
 |
| Photo by DataCo PNG |
“We are indeed proud of our efforts to work with PNG DataCo, persisting until we were able to table a fully tailored solution to their insurance challenge,” said Mr. Aholotu Palu, CEO of PCRIC. “Such coverage marks a significant turning point in the development of our capability to provide non-sovereign insurance products to state-owned entities within the Pacific Islands region.”
Mr. Paul Komboi, CEO of PNG DataCo, expressed his gratitude to the PCRIC team for their dedication in finalizing the agreement. “PNG DataCo is very excited about the robust partnership now formed. This is a historic milestone for our region and a testament to our shared vision and commitment. Our joint efforts truly showcase the merit of partnership and mutual commitment in addressing regional risk challenges. This is the first of its kind for Submarine Cable Systems in the world and we are extremely proud to be at the forefront of innovating this parametric insurance product.”
Dr. Simon Young, Senior Director for Disaster Risk Finance at WTW, highlighted the collaborative nature of the project. “This was truly a collaborative effort between PNG DataCo, PCRIC, and colleagues across WTW’s Alternative Risk Practice. We were pleased to contribute our experience in designing bespoke parametric solutions and risk analytics to create insurance coverage for critical infrastructure that meets both the needs of the client and the international markets.”
With the policy now active, PNG will join the Pacific Catastrophe Risk Insurance Foundation (PCRIF), gaining a voice in PCRIC’s strategic direction and product development to better align with the country’s financial protection needs.
This pioneering insurance agreement not only strengthens PNG DataCo’s operational resilience but also sets a precedent for innovative risk management solutions in the region and beyond.
Next:
Post a Comment