The Central Bank of Solomon Islands (CBSI), the country’s monetary authority responsible for maintaining financial stability and supervising the banking sector, has successfully completed the first payouts under Solomon Islands’ climate risk parametric insurance programme.
The payments were triggered by the heavy rainfall event in January 2026 and were processed through the Bank’s regulatory sandbox framework.
The payments were delivered through the TrigaCash insurance product, marking a significant move to reinforce both climate protection and financial security for vulnerable households across Solomon Islands. TrigaCash is the country’s first climate-risk parametric microinsurance solution, developed to provide fast and predictable support when severe weather strikes.
Unlike conventional insurance, TrigaCash automatically disburses funds once independently verified weather data meets pre-agreed rainfall or climate thresholds. There is no requirement for individual claims assessments. The product is tailored to assist farmers, fishers, small-scale entrepreneurs, and households exposed to heavy rainfall, cyclonic winds, and drought, enabling them to manage losses and restore income-generating activities more quickly.
The programme was formally introduced in May 2025 under the CBSI regulatory sandbox framework. It is being implemented in collaboration with Trans Pacific Assurance Limited (TPAL), a licensed insurer in Solomon Islands, alongside M-SELEN, a digital mobile wallet platform, and YouSave (SINPF), the voluntary savings scheme operated by the Solomon Islands National Provident Fund. Technical guidance and programme backing are provided by the United Nations Capital Development Fund through the Pacific Insurance and Climate Adaptation Programme.
Following the January heavy rainfall event, 35 YouSave member policyholders received payouts amounting to SBD 8,800. All disbursements were completed within two weeks, reflecting the speed and practicality of parametric insurance in responding to climate-related events. Payments were triggered under the Strike 1 rainfall category, which applies when rainfall exceeds 255 mm but remains below 380 mm.
Rainfall verification relied on satellite data supplied by the European Centre for Medium-Range Weather Forecasts. Using the fully digital payment arrangement managed by TPAL and M-SELEN, funds were deposited directly into recipients’ M-SELEN mobile wallets, supporting a secure and transparent transfer process.
While TrigaCash is presently offered in Guadalcanal and Malaita provinces, rainfall triggers for this event were recorded in Guadalcanal and Honiara. Communities affected included Malango, Nggosi, Mataniko, Saghalu, Vatukulau, Mbumburu, Vavaea, and Tangarare. Malango registered the largest concentration of payouts, with several policyholders qualifying for multiple disbursements.
Analysis of the claims shows that 40% were linked to the SBD 160 premium level, which provides coverage of SBD 2,000, while 60 percent were associated with the SBD 320 premium level, offering coverage of SBD 4,000. Since enrolment opened in November 2025, the scheme has attracted 66 policyholders, including 39 women.
Women represented 51% of beneficiaries in the most recent payout cycle. Of these, 40% were based in Guadalcanal and 11 percent in Honiara. The participation levels point to increasing acceptance of digital financial services across the country, particularly among women, and underscore the growing role of inclusive insurance in reinforcing household financial resilience.
Interviews carried out in February 2026 show the practical benefits of the scheme for families affected by January’s rainfall. Ruth Palusi, a subsistence gardener in Henderson, Honiara, experienced significant losses to her cassava and cabbage crops as a result of waterlogging, which reduced her capacity to generate income from market sales. She welcomed the SBD 200 payment she received under TrigaCash.
Stephanie Emma Mamukana, a market vendor in Henderson, said her cabbage and banana crops were completely destroyed, placing pressure on her family’s income.
“Heavy rain makes it difficult to continue with my small market, but TrigaCash helped us with money to meet our immediate household needs.
“Before I joined TrigaCash, whenever there was a hazard like heavy rain, I had to use money from my small market earnings, my personal savings, and even withdraw from my YouSave account. But with Trigacash’s support, I no longer need to use those funds, as it helps cover our household needs.”
CBSI Governor Dr Luke Forau has previously described the development of parametric insurance as a “historic milestone” for Solomon Islands, noting that the regulatory sandbox has enabled the testing of actuarial models, consumer protection safeguards, and delivery systems to ensure fairness and efficiency.
The January 2026 payouts represent the first large-scale demonstration of how parametric insurance can provide rapid financial support, promote inclusive green finance, and reduce the economic impact of severe weather events on vulnerable households.
In responding to the recent payouts, Governor Forau expressed satisfaction with the outcome. “This is great news for the newly introduced initiative, indeed a positive story to tell. I am pleasantly pleased to learn of the fast payout mechanism,” Governor Forau stated.
As one of the countries most exposed to climate-related hazards, Solomon Islands continues to face frequent and costly natural events. The successful implementation of TrigaCash payouts signals meaningful progress in climate adaptation efforts by equipping communities with financial tools that provide timely protection and reinforce resilience at the household level.
CBSI, TPAL, M-SELEN, SINPF, and UNCDF have reaffirmed their shared commitment to expanding this initiative and further strengthening an inclusive and climate-resilient financial system for all Solomon Islanders.
