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 disbursement of the Solomon Islands Climate Risk Parametric Insurance Scheme.
The payments were triggered by a heavy rainfall event in January 2026 and were processed through the bank’s regulatory sandbox framework.
The payments, made through the TrigaCash insurance product, mark a major step forward in Solomon Islands to enhance climate protection and the financial security of vulnerable households. TrigaCash is the country’s first climate risk parametric microinsurance solution designed to provide fast and predictable support when severe weather strikes.
Unlike traditional insurance, TrigaCash automatically disburses funds once independently verified weather data reaches pre-agreed rainfall or climate thresholds. There is no requirement for individual claims evaluation. The product is tailor-made to assist farmers, fishermen, small-scale entrepreneurs and households affected by heavy rains, cyclones and drought, allowing them to manage losses faster and resume income-generating activities.
The program will be officially launched in May 2025 under the CBSI regulatory sandbox framework. The project is being implemented in partnership with Trans Pacific Assurance Limited (TPAL), a licensed Solomon Islands insurance company, digital mobile wallet platform M-SELEN, and YouSave (SINPF), a voluntary savings program operated by the Solomon Islands National Provident Fund. The United Nations Capital Development Fund provides technical guidance and programmatic support through the Pacific Insurance and Climate Adaptation Program.
Following heavy rainfall events in January, 35 YouSave member policyholders received payouts totaling SBD 8,800. All payouts were completed within two weeks, demonstrating the speed and practicality of parametric insurance in responding to climate-related events. Payments are triggered under the “Strike 1” rainfall category, which applies when rainfall exceeds 255mm but falls below 380mm.
Rainfall verification relies on satellite data provided by the European Center for Medium-Range Weather Forecasts. Using a fully digital payment arrangement managed by TPAL and M-SELEN, funds are deposited directly into the recipient’s M-SELEN mobile wallet, enabling a secure and transparent transfer process.
While TrigaCash is currently available in the provinces of Guadalcanal and Malaita, rainfall triggers for the event were recorded in Guadalcanal and Honiara. Affected communities include Marango, Ngosi, Mataniko, Sagaru, Watukulau, Mbemburu, Vavaea and Tangalare. Marango has the most concentrated payouts, with multiple policyholders eligible for multiple payouts.
An analysis of the claims showed that 40% of the claims were related to the SBD 160 premium level, which provides coverage for SBD 2,000, while 60% were related to the SBD 320 premium level, which provides coverage for SBD 4,000. Since registration opened in November 2025, the scheme has attracted 66 policyholders, including 39 women.
In the most recent pay cycle, women accounted for 51% of beneficiaries. Of these, 40% are in Guadalcanal and 11% in Honiara. Participation levels demonstrate growing acceptance of digital financial services across the country, especially among women, and highlight the growing role of inclusive insurance in building household financial resilience.
Interviews conducted in February 2026 showed the practical benefits of the scheme for households affected by the January rains. Ruth Palusi, a subsistence gardener in Henderson, Honiara, suffered significant losses to her cassava and cabbage crops due to waterlogging, which reduced her ability to generate income from market sales. She welcomed the SBD 200 payment received through TrigaCash.
Henderson market vendor Stephanie Emma Mamukana said her cabbage and banana crops were completely destroyed, putting pressure on her family income.
“The heavy rain made it difficult for my small market to continue operating, but TrigaCash helped us raise funds to meet our family’s immediate needs.
“Before I joined TrigaCash, I had to dip into my meager market income and personal savings or even withdraw funds from my YouSave account whenever there was a danger such as heavy rain. But with the support of Trigacash, I no longer need to use these funds as it can meet our family needs.”
CBSI Director Dr Luke Forau has previously described the development of parametric insurance as a “historic milestone” for Solomon Islands, noting that the regulatory sandbox enables the testing of actuarial models, consumer protection safeguards and delivery systems to ensure fairness and efficiency.
The January 2026 payout is 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 response to the recent expenditures, Governor Foro expressed satisfaction with the results. “This is great news for the new initiatives being rolled out, it’s a positive story indeed. I’m pleased to hear about the rapid payment mechanism,” Premier Folau said.
As one of the countries most affected by climate-related disasters, Solomon Islands continues to face frequent and costly natural events. The successful implementation of TrigaCash payments marks meaningful progress in climate adaptation efforts, equipping communities with financial tools, providing timely protection and building resilience at the household level.
CBSI, TPAL, M-SELEN, SINPF and UNCDF reaffirmed their joint commitment to expand this initiative and further strengthen inclusive and climate resilient financial systems for all Solomon Islanders.
