PRIF has found that several donor-funded infrastructure projects in the Pacific have recently experienced delays because of difficulty in accessing commercially viable insurance coverage. This can result in a significant financial burden, with parties having to accept significant insurance risk if the insurance is not secured. A limited survey of contractors active in the Pacific was conducted and the results revealed the experiences of some contractors who also operate outside the Pacific suggest they believe they are paying increased insurance premiums due to less competition and scaled-back operations of Australian and New Zealand insurance companies in the Pacific. Based on the survey results, the report provides recommendations to improve the cost-effective management of infrastructure project lifecycle risks in the Pacific.
