The Central Bank of the Solomon Islands (CBSI) and Transpacific Assurance Limited (TPAL) have signed a Participation Agreement to pilot a parametric insurance solution, launching a 12-month testing phase using real customers. The pilot will be rolled out in Malaita and Guadalcanal provinces, with the stated aim of expanding to all nine provinces if testing is successful. The trial is designed to assess the product’s viability and scalability, gather customer feedback, and help regulators better understand potential risks and develop risk mitigation and regulatory frameworks. CBSI linked the initiative to Objective 4 of the National Financial Inclusion Strategy 3, which focuses on improving household and community financial resilience through accessible insurance for rural Solomon Islanders; TPAL noted the product is supported by digital technology and global partners including the United Nations Capital Development Fund. Parametric insurance, which is new to the Solomon Islands but already used in Fiji, Samoa and Vanuatu, provides predetermined payouts triggered by specified weather events such as cyclones, droughts, heavy rainfall and strong winds, rather than compensating assessed losses under traditional indemnity insurance.
Central Bank of the Solomon Islands 2025-05-06
Central Bank of the Solomon Islands signs participation agreement with Transpacific Assurance to pilot parametric insurance in Malaita and Guadalcanal
The Central Bank of the Solomon Islands and Transpacific Assurance Limited have initiated a 12-month pilot of a parametric insurance solution in Malaita and Guadalcanal, aiming for potential expansion across all nine provinces. This initiative, linked to the National Financial Inclusion Strategy 3, seeks to enhance financial resilience through accessible insurance, leveraging digital technology and global partnerships.