BY NED GAGAHE
The successful rollout of Solomon Islands’ first-ever parametric microinsurance payouts has proven that climate insurance can deliver fast financial support to vulnerable communities when disasters strike, Central Bank Governor Dr Luke Forau says.
Dr Forau made the remarks during a press conference last Friday marking the country’s first TrigaCash payouts following heavy rainfall events earlier this year.
Around 35 policyholders received a combined SBD$8,800 after rainfall thresholds were triggered, activating automatic payments under the innovative insurance scheme.
While the payout amount was relatively modest, Dr Forau said the real achievement was demonstrating that the entire system functioned as intended.
“The true significance is not the amount. It is the proof that the system works,” he said.
“The trigger was met, the data was confirmed, payments were processed and moved through digital channels, and funds reached people quickly when they needed them most.”
TrigaCash, launched last year, is Solomon Islands’ first parametric microinsurance product. Unlike traditional insurance schemes that require lengthy damage assessments and claims processing, payouts are automatically activated when pre-determined weather conditions are met.
According to Dr Forau, some policyholders received more than one payout after repeated periods of heavy rainfall triggered the product multiple times.
He said the successful payouts demonstrated how innovative financial solutions can help communities recover more quickly from climate-related shocks.
“This is what financial inclusion is supposed to look like when it delivers in real time under real stress, and that is climate resilience,” he said.
The Governor said that climate risks are becoming an increasingly important challenge for Solomon Islanders, particularly those working in agriculture, fisheries, small businesses and the informal sector.
He said financial inclusion should no longer be limited to access to bank accounts, savings and payment services.
“Inclusion today must also mean protection, where ordinary people have access to financial products that help them manage the real risks they face,” Dr Forau said.
The Central Bank supported the development of TrigaCash through its regulatory sandbox, which allowed the product to be tested and refined in a controlled environment while maintaining strong consumer protection standards.
Dr Forau credited the success of the initiative to collaboration among development partners, government agencies, financial institutions and digital payment providers.
He acknowledged the contributions of UNCDF, UNDP, Trans Pacific Assurance, SINPF’s YouSave scheme, M-SELEN, World Vision and the governments of New Zealand and Australia.
Despite the positive outcome, Dr Forau stressed that TrigaCash remains a pilot programme and that regulators will continue to monitor customer understanding, operational performance and consumer protection measures before any wider expansion.
“The first payouts are an important beginning. They are not a destination,” he said.
“But they tell us that climate resilience is no longer a separate conversation from financial inclusion. The two now belong together.”
He encouraged farmers, fishers and other vulnerable groups to consider joining the scheme to better protect their livelihoods from future climate-related disasters.
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