Case Study:
Fast Payouts, Faster Recovery: Solomon Islands’ Big Win
The Challenge
The Solomon Islands is highly vulnerable to climate-related hazards, particularly heavy rainfall and tropical cyclones, which can significantly impact livelihoods, infrastructure, and vulnerable communities. Traditional insurance products often involve lengthy claims assessments and administrative processes, delaying financial assistance when it is needed most.
To strengthen financial resilience and improve disaster preparedness, there was a need for an innovative insurance solution capable of providing rapid, transparent, and objective financial support following extreme weather events.
The Approach
Supported by the United Nations Capital Development Fund (UNCDF) through the Pacific Insurance and Climate Adaptation Programme (PICAP), TrigaCash was introduced as the Solomon Islands’ first parametric microinsurance product.
The solution was designed around predefined weather triggers, using objective rainfall and cyclone data to determine when payouts should be activated. Unlike conventional insurance products, TrigaCash eliminates the need for manual loss assessments, enabling faster and more efficient access to financial assistance.
When rainfall levels exceeded predefined thresholds, the payout process was automatically triggered, demonstrating the effectiveness of the parametric framework and its ability to deliver timely support to policyholders.
The Solution
Parametric Microinsurance Framework
The product was structured around predefined rainfall and cyclone trigger thresholds, ensuring objective and transparent payout activation following qualifying weather events.
Automated Payout Process
By relying on independently verified weather data, the solution removes the need for traditional claims assessments and manual verification procedures.
Data-Driven Claims Calculation
Calibrated trigger mechanisms and objective datasets are used to calculate payouts consistently, accurately, and efficiently.
Digital Payment Delivery
Payouts are delivered directly through M-SELEN mobile wallets, enabling beneficiaries to access financial support quickly after a triggering event.
Real-Time Portfolio Monitoring
The Securisk platform provides continuous portfolio monitoring and supports transparent information sharing among programme stakeholders.
The Impact
The programme successfully demonstrated the effectiveness of parametric microinsurance in delivering rapid financial support following extreme rainfall events in the Solomon Islands.
- 41% of customers received a payout
- 30% received a payout from the second rainfall event
- 28% received payouts from both rainfall events
- All payouts were automatically triggered by excess rainfall events
- Claims processed using objective, data-driven methodologies
The successful payout events validated both the rainfall trigger design and the broader parametric insurance framework. By providing timely and transparent financial assistance, TrigaCash has strengthened disaster preparedness, financial inclusion, and climate resilience for participating communities.
WRMS's Role
WRMS served as the technical partner for product design and claims calculation support, contributing to:
- Structuring the parametric trigger framework
- Supporting multi-peril risk modelling and calibration
- Establishing payout calculation protocols
- Validating claims using objective datasets
This successful payout demonstrates how robust parametric insurance architecture can transform innovative product design into real-world action, delivering rapid financial support and strengthening resilience for vulnerable communities.