The Central Bank of the Solomon Islands (CBSI) announced the launch of the country’s first market-based parametric micro-insurance product, to be offered by Trans Pacific Assurance Limited (TPAL) with support from the United Nations’ Pacific Insurance and Climate Adaptation Programme (PICAP) and piloted through CBSI’s regulatory sandbox. The product is designed to provide rapid, automatic payouts to households affected by natural hazards including cyclones, heavy rainfall and droughts, based on verified weather data and pre-defined trigger thresholds. CBSI said the sandbox testing has focused on reviewing the product’s actuarial models, consumer protection mechanisms and distribution strategy. The initiative is also positioned as supporting National Financial Inclusion Strategy 3, including its goal of reaching 300,000 adults with financial services by 2025; PICAP is implemented by the UN Capital Development Fund, UN Development Programme and the UN University Institute for Environment and Human Security, with donor support referenced from Australia, New Zealand and the United Kingdom. Pilot rollout will begin in Guadalcanal and Malaita through partnerships including the Solomon Islands National Provident Fund and M-SELEN, with plans to expand to other provinces based on community feedback.
Central Bank of the Solomon Islands 2025-05-16
Central Bank of the Solomon Islands launches first market-based parametric micro-insurance pilot via its regulatory sandbox
The Central Bank of the Solomon Islands launched the first market-based parametric micro-insurance product, offered by Trans Pacific Assurance Limited with support from the United Nations' Pacific Insurance and Climate Adaptation Programme, piloted through CBSI's regulatory sandbox. The initiative supports the National Financial Inclusion Strategy 3, aiming to reach 300,000 adults with financial services by 2025, with pilot rollout starting in Guadalcanal and Malaita.