Joint Programme Factsheet
Tools for » Pacific Insurance and Climate Adaptation Programme (PICAP)
About

Overview

To assist the governments, private sector partners, and local populations of Pacific Small Island Developing States better manage economic loss following natural and climate change-related disasters, stakeholders set out to improve disaster risk management plans and link them to newly developed national and sub-national integrated climate disaster risk financing (CDRF) strategies. 

CDRF tools and instruments, like parametric insurance, are a new medium for reaching low-income people and those left behind— vulnerable populations comprised of women, youth, and individuals employed in micro, small, and medium enterprises from the agriculture, fisheries, and tourism sectors.

 

Fund scope

Pacific Small Island Developing States (PSIDS) are highly vulnerable to natural hazards that include earthquakes, volcanic eruptions, tsunamis, tropical cyclones, storm surges, drought, and other events. Their occurrence leads to significant budget reallocations and diversion of funds in the South Pacific from critical health, education, and economic development programmes. Annual disaster-related direct losses have soared to $284 million US dollars and the frequency and severity of disasters are on the rise thanks to climate change, disrupted economic, development and social progress, and threats of mass displacement and forced migration.  

Although many PSIDS governments developed national and sub-national disaster risk management (DRM) plans, none have integrated a climate disaster risk financing (CDRF) strategy with administrative frameworks to better manage economic losses following a disaster. This poses a serious problem to SDG acceleration while also challenging blue/green economy growth and safeguarding people, businesses, and industries against financial ruin. The lack of micro- and medium-level climate risk insurance or CDRF instruments for individuals, small businesses, local organizations, and cooperatives means stakeholders and members of the public at large turn to a handful of less attractive options such as borrowing, draining savings, postponing investments, or becoming dependent on government assistance.

Theory of change

To address existing financing and protection gaps at micro, meso, and macro levels, the United Nations leaned into South-South and triangular cooperation to partner with change makers and innovators on PSIDS vulnerability and the absence of regional CDRF mechanisms in Fiji, Samoa, the Solomon Islands, Tonga, and Vanuatu. Equipping governments and communities with tailored CDRF strategies and solutions they makes them better positioned to address the impacts of climate change.

The PICAP builds resilience via four workstreams:

 Enabling policy and regulation: Increasing risk awareness and understanding toward preparing the enabling environment for the introduction of CDRF tools, including parametric (index based) insurance and creation of CDRF strategies.

  1. Open digital payments ecosystem: Using digital links for products and payment delivery.
  2. Inclusive innovation: Developing and deploying inclusive market-based insurance and blended financing instruments for micro and meso levels, using mobile and digital technologies.
  3. Empowered customers: Educating individuals and consumers on the benefits of using insurance and other risk financing tools as part of a DRM strategy.

Improving financial preparedness of Pacific Island governments and communities augments their capacity to effectively handle disasters: being financially ready results in faster post-disaster recovery, rebuilding of livelihoods, and improved resilience. Making market based parametric insurance and other CDRF instruments widely available also assists communities and governments in being ready to ward off socioeconomic ruin and build back better in the wake of climate-induced or natural disasters.

Investment Committee

Comprised of representatives from the United Nations, donors, the Pacific Island Forum Secretariat (PIFS), and other stakeholders, the committee acts as the management and/or programme board. Investment Committee members ensure accountability for the project and oversee regional activities, provide guidance and strategic direction to programme partners, approve the annual work plan (including budgets), and make recommendations to the UNCDF Executive Secretary on projects, investments, and efficient use of resources.

Project Management Team

Responsible for the day-today management of project implementation and overall performance of the project. Typically made up of resource personnel from all project implementing partners, this project team reports to the project Steering Committee, which governs/oversees project in terms of scope, budget, and timelines.

Technical Advisory Committee

Made up of independent, technical experts from various organizations, members of the Advisory Committee cover topical areas directly relevant to programme design, development, and implementation.

Administrative Agent

Recipient Organizations receive funds through the Administrative Agent, the MPTF Office. The Administrative Agent is responsible for the receipt, administration and management of contributions from donors, disbursement of funds to Recipient Organizations, and consolidation and dissemination of progress reports to donors.  

Participating UN Organizations

Programme implementation is the responsibility of each Participating UN Organization. Each organization is programmatically and financially responsible for resources received.

Focus on impact and results

Pathways to achieve results involve a unique mix of strategic instruments: Assessments and research, technical advice, de-risking financial instruments (loans, guarantees, and grants), capacity building and training, implementation and partnerships, education and awareness raising, data insights, customer centricity, and performance measurements.

Collaboration with government and private sector stakeholders is vital in the design of programme activities that take successful market-based products and scale them, so they are accessible by Pacific Island households, communities, small businesses, public and private organizations, and governments to improve disaster risk management modalities.

In this section you will find the latest editions of reports that detail Fund performance and results.

Recent Documents

This tab shows only recent documents relevant at the Fund level. To see more documents at both the fund and project level go to the Document Center.

Key Figures
Funding Status
Participating Organizations are required to submit final year-end expenditures by April 30 in the following year; Interim expenditure figures are submitted on a voluntary basis and therefore current year figures are not final until the year-end expenditures have been submitted.
Total as of
Values in US$
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Funds with Administrative Agent
Contributions from Donors 5,540,701  
Interest and Investment Income (from Fund) 0  
Interest (from Participating Organizations) 0  
Total source of funds   5,540,701
Transferred to Participating Organizations 2,131,731  
Refunds from Participating Organizations 0  
Administrative Agent Fee 55,407  
Direct Cost 0  
Bank Charges 8  
Total use of funds   2,187,146
Balance with Administrative Agent   3,353,555
As a percentage of deposits   60.5%
Funds with Participating Organizations
Transfers to Participation Organizations 2,131,731  
Total resources   2,131,731
Participating Organizations' Expenditure 291,899  
Refunds from Participating Organizations 0  
Total expenses     291,899
Balance with Participating Organizations   1,839,832
As a percentage of transfers   86.3%
Total Balance of Funds   5,193,386
As a percentage of deposits   93.7%
Delivery Analysis
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Projects
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Contacts

For Policy and Programme Issues

UNDP Pacific Office, Fiji www.pfip.org

  • Krishnan NarasimhanUNCDF Deputy Programme Manager, E-mail: krishnan.narasimhan@uncdf.org 
  • Judith Karl, UNCDF Executive Director, E-mail: judith.karl@uncdf.org

 

For Fund Administrative Agent Issues

Multi-Partner Trust Fund Office (MPTF Office)

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