The Pacific has increasingly faced the devastating impacts of naturally induced catastrophes, disasters, and climate change. As a result, many communities have been left displaced and unable to rebuild due to the associated cost of damage. Several enablers that could help mitigate economic shocks caused by such events remain limited due to limited understanding of the insurance concept and mechanisms, and a lack of basic financial literacy, such as savings, budgeting, and pensions, among others. These further exacerbate the crisis in the region.

The report’s approach is anchored around principles that enable equal access to affordable and suitable insurance for low- and moderate-income communities . It examines the associated challenges, risks, and coping mechanisms and identifies unaddressed issues. For this country study report, the team conducted extensive secondary research, which included a review of the existing body of knowledge in inclusive insurance and disaster risk finance. The study received extensive support from key informant interviews (KIIs) and industry-level workshops with stakeholders. This support supplemented insights and helped fill gaps in information on solutions and the overall landscape for inclusive insurance and disaster risk finance.

The study covered significant ground across interrelated areas of inclusive insurance and disaster risk finance. It articulates the recent developments, gaps, and opportunities at the policy and regulatory levels and in the supply side that comprises insurance industry players, and captures the perspective of the available products and channels.

This study was conducted by the Pacific Insurance and Climate Adaptation Prorgamme in partnership with the Australia-PNG Economic Development Partnership.