The initiative is a collaborative effort with Blue Marble Microinsurance, a London-based InsurTech company, and PT Asuransi Jasa Indonesia (JASINDO), a state-owned insurance provider. The Ministry of Agriculture of Indonesia represents the demand side of the partnership.

Indonesia is one of the world’s largest coffee and cocoa producers, but frequent extreme weather events—flooding, storms, landslides, and droughts—have disrupted the livelihoods of 2.3 million smallholder farming households.

Climate change impacts like rising temperatures, erratic rainfall, prolonged dry spells, and pests have significantly lowered crop yields, jeopardising farmers’ economic stability and harvest quality.

The project aims to provide a financial safety net that stabilises farmers’ incomes and prevent households from falling into poverty following climate-related harvest failures through tailored, data-driven coverage.

Unlike traditional insurance, which requires manual damage assessments, this parametric solution uses satellite data to trigger automatic payouts based on specific environmental conditions.

The insurance products provide protection against drought and excess rainfall, tailored to the specific risks and harvest calendars of different regions.

Farmers can choose between basic coverage or additional protection for specific phases of crop production, ensuring flexibility and relevance to their needs.

The product development process includes submission of the insurance designs for regulatory approval by the Indonesian Financial Services Authority (OJK) as well as the mobilisation of both local and international reinsurance capacity.

At the national level, JASINDO will underwrite and manage the insurance products in line with Indonesia’s reinsurance requirements. Internationally, Blue Marble’s network of reinsurers, including Aspen, ASSA, MAPFRE, TransRe, and Zurich, will provide additional risk-sharing support.

The Ministry of Agriculture and its provincial Dinas Pertanian offices will lead distribution, leveraging their established network previously used for rice and livestock insurance.

Payouts will be facilitated through two potential channels. The first one involves direct payouts to farmers via bank accounts, farmer cards (Kartu Tani), or group accounts.

The second channel is through the integration with Kredit Usaha Rakyat (KUR) loans, the government-supported People’s Business Loan scheme for SMEs, where insurance proceeds first service outstanding debt before the remainder is transferred to the farmer.

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Dr. Bartholomew takes on his new role at Guy Carpenter on June 1st, 2026. He will be based in London and will report to David Lightfoot, Managing Director, Global Analytics and Advisory, Guy Carpenter.

In his new role, Dr. Bartholomew will work closely with the broking team to drive further growth in the emerging parametric risk transfer space to deliver robust solutions for clients.

Dr. Bartholomew founded FloodFlash in 2017 with Adam Rimmer. The parametric flood insurance company was acquired by NormanMax Insurance Holdings last year. Prior to founding FloodFlash, Dr. Bartholomew spent five years at Moody’s RMS as a senior consultant in the capital markets advisory team.

“We are excited to welcome Ian as we continue to expand our parametric advisory capabilities. Parametric solutions are an important part of the global risk management ecosystem, providing a transformative approach to risk transfer that is gaining traction across the reinsurance market. Ian’s extensive expertise and leadership in the design and implementation of parametric solutions will be instrumental for our clients as they seek to adopt these innovative mechanisms,” said Lightfoot.

Dr. Bartholomew commented: “Joining Guy Carpenter represents an exciting opportunity to advance the role of parametric advisory in today’s dynamic risk landscape. With the increasing unpredictability of global events, it’s crucial to develop solutions that are not only innovative and responsive but also practical.”

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The revision of the parametric insurer’s standalone credit quality is reportedly due to sustained earnings volatility, which has left its capital position vulnerable to potential losses.

Fitch assessed ARC Ltd.’s financial performance and earnings as “weak,” noting that droughts and extreme weather events across the continent contributed to a net loss of $38 million at end-2024, with a combined ratio of 180%.

However, the insurer’s net income rebounded to $21 million in the first nine months of 2025.

Fitch has cautioned that ARC Ltd.’s earnings are likely to remain volatile due to the nature of the risks it underwrites, though reinsurance is expected to help limit net exposure to losses.

The rating agency also highlighted ARC Ltd.’s business profile, noting its specialist role as a parametric insurer for African sovereigns and its relatively small size.

Fitch added that the firm’s strong track record of claims payments, along with improvements in product diversification and risk pooling, strengthens its franchise and supports the agency’s overall assessment of its company profile.

According to Fitch, the ratings continue to reflect the commitment and credit quality of ARC Ltd.’s sponsors.

Fitch has applied an uplift of three notches from ARC Ltd.’s standalone credit quality of ‘bb+’, reflecting its assessment of the sponsors’ willingness and ability to support the insurer, underpinned by the firm’s development objectives.

Fitch continued, “The uplift is driven in particular by our assessment of a strong willingness to support despite ARC Ltd.’s volatile profitability.

“ARC Ltd. is sponsored by the German development bank KfW through the Federal Ministry for Economic Cooperation and Development (BMZ) and by the UK Foreign, Commonwealth & Development Office (FCDO).

“KfW/BMZ and the FCDO also oversee ARC Ltd.’s governance and development strategy, while also facilitating sovereign participation in the business through premium subsidy schemes.

“Fitch expects further capital support to be made available as ARC Ltd. continues to achieve its development goals.”

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Cripps joins the Sydney-based team, bringing specialist expertise in the agricultural sector.

In the past, he has gained extensive experience deploying IoT sensors across large-scale horticultural operations as a Field Technician with Phytech, before moving into crop insurance with Crop Risk Underwriting.

According to Lynn Roehrig, Head of Business Development Australia and New Zealand, Descartes Underwriting, this appointment reflects rising demand for more effective protection against climate and emerging risks.

Lynn emphasised, “Across Australia and New Zealand, many businesses operate in regions highly exposed to extreme weather and climate volatility, where traditional insurance capacity is increasingly constrained or cost-prohibitive.

“Recognising the significant economic and social impact of these protection gaps, we are focused on delivering practical, data-driven parametric solutions adapted to each of the clients’ needs and sector that offer transparency, speed of payout and certainty when it matters most.”

The firm established its Australian presence in 2021, led by Ben Qin, then Head of North Asia and Australia and now Head of Asia Pacific, with Lynn joining in 2022.

Lynn commented on the appointment, “By leveraging real-time data and advanced modelling, we’re able to deliver transparent, highly granular data that supports more responsive triggers and improved claims outcomes. Will brings firsthand insight into the challenges facing modern agribusinesses and further enhances Descartes’ ability to structure highly tailored parametric solutions across a broad range of industries and perils.”

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According to ARC, this financing was activated through three complementary instruments established in advance.

Madagascar’s government reportedly first drew on $19.9 million from the REPAIR programme’s reserve, a World Bank initiative implemented by ARC Ltd that provides countries with rapid access to financing to support early response efforts following severe climate events.

The severity of the cyclones also triggered ARC’s sovereign parametric insurance coverage, releasing approximately $5.6 million, while $3.79 million was mobilised through replica insurance supporting humanitarian partners.

Together, these mechanisms have enabled a coordinated financial response to the cyclones’ impact,” the firm observed.

ARC continued, “This sequence illustrates how layered disaster risk financing can provide both rapid initial liquidity and additional protection when climate shocks exceed certain thresholds, strengthening countries’ financial resilience to increasingly complex climate risks.”

Dr Jean Chrysostome Ngabitsinze, ARC’s Group Director General, commented, “Our thoughts are with all those affected by cyclones Fytia and Gezani.

“Madagascar has demonstrated strong leadership in strengthening its preparedness for climate-related shocks and has been a longstanding and committed partner of ARC. The resources mobilised today are the result of that collaboration and foresight.

“ARC remains fully committed to standing alongside Madagascar as response and recovery efforts continue.”

David Maslo, Chief Executive Officer of ARC Ltd, added, “Climate-related disasters require financing that can respond to different types of impact and at different moments of a crisis.

“The activations supporting Madagascar illustrate how combining complementary solutions can provide rapid initial liquidity while also ensuring sustained support for recovery. This is central to ARC’s mission to help countries strengthen their financial resilience to climate shocks.”

Caroline Cerruti, World Bank Lead Financial Sector Specialist and REPAIR Regional Lead, noted, “With REPAIR, the World Bank is committed to reinforcing the capacity of countries in the region to respond to severe climate events.

“These disbursements demonstrate how pre-arranged financing, coupled with strengthened operational systems, can provide the resources and frameworks required to respond to complex disasters.

“This coordinated approach is essential for transforming how the region manages climate shocks and protects affected communities.”

Dr Ramiarison Herijantovo Aimé, Minister of Economy and Finance of the Republic of Madagascar, said, “The rapid mobilisation of financing following these cyclones has provided important support to Madagascar’s national response.

“Continued collaboration with ARC, the World Bank and partners strengthens our capacity to respond effectively to disasters and support affected communities.”

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The discussions took place during a week of meetings at the The Rockefeller Foundation Bellagio Center in Italy between 23 and 27 February.

Convened with support from The Rockefeller Foundation, the gathering brought together the four regional sovereign risk pools alongside representatives from development finance institutions and the re/insurance sector to consider how cooperation could be deepened and scaled.

During the session, participants framed the moment as a turning point for development insurance, expressing the view that the sector is positioned for expansion and that a coordinated solution among the risk pools could represent a practical next phase. The week was described as constructive and concentrated, providing space for open and uninterrupted exchanges on the future direction of climate risk protection.

A central theme of the dialogue was how to move from a landscape of separate, programme-based initiatives towards a more structured and enduring institutional model capable of standing alongside mainstream development finance.

Contributors identified several constraints that currently limit growth: insurance remains under-recognised within climate finance, protection targets and measurement frameworks are limited, capital remains fragmented, reinsurance arrangements are typically short term, pricing can fluctuate significantly, and risk financing is not always fully embedded within fiscal planning. There was broad agreement that achieving scale will require redesigned capital structures, stronger coordination mechanisms and sustained political backing.

PCRIC stated that a joint platform could build on the collaboration that already exists among the pools, with the aim of lowering reinsurance costs and extending coverage to more member countries. By coordinating capital approaches, technical capabilities and market engagement, the four institutions intend to assess whether a more unified structure could deliver greater stability and efficiency.

Participants also considered how catalytic public funding might operate more effectively alongside private reinsurance markets, and how closer alignment between regional pools, including through a possible joint reinsurance arrangement, could provide more consistent risk capacity over time.

As an outcome of the meetings, the four pools agreed to enter a joint design phase to explore options for a shared risk financing framework. This phase will assess how coordinated capital, collective reinsurance structures and shared technical systems might function across regions and at international level. While still at an early point, the institutions confirmed a common intention to take the design work forward.

PCRIC added that its involvement ensured Pacific perspectives were represented in the discussions and reiterated its commitment to advancing climate and disaster risk financing in the region. The organisation also referenced its disaster risk finance education initiatives and welcomed the opportunity to strengthen collaboration with fellow pools and development partners.

Collectively, the four institutions expressed appreciation to the development finance leaders, industry specialists and partners who contributed to shaping the discussions and advancing the concept.

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The scheme draws on Munich Re’s aiSure platform, a recognised tool for evaluating AI risks, to cover exposures not typically addressed by conventional cyber or technology errors and omissions (E&O) policies.

The Mosaic and aiSure collaboration provides up to EUR/USD/CAD 15 million in initial coverage to protect AI developers and vendors worldwide against financial losses stemming from defined AI performance failures.

Mosaic is responsible for underwriting and marketing the product through its cyber specialists across its international network, while Munich Re contributes technical expertise, analytics, and insights from its extensive experience in AI risk.

“We’re delighted to partner with Munich Re on this pioneering initiative,” commented Dennis Bertram, Head of AI Underwriting at Mosaic. “aiSure provided the technical know-how, and we’ve built on that with specialist underwriting to create a solution that is practical and scalable. Our cyber underwriters are now taking this to market so brokers and clients worldwide can address one of the most important commercial questions in AI: what happens when the technology doesn’t deliver?”

Research shows that while business leaders are keen to harness AI, many are cautious due to uncertainties around performance risks and potential returns. The Mosaic and aiSure solution addresses this by offering protection when an AI model fails to meet clearly defined performance standards, giving clients confidence and enabling vendors to support their technology.

AI offers significant opportunities for efficiency and growth, yet adoption carries risks that are often unforeseen and difficult to quantify. The Mosaic and aiSure coverage allows providers and users of AI to adopt technology with greater assurance by insuring against errors or hallucinations in AI and generative AI models.

“In our joint offering with Mosaic, we are now bringing longstanding AI underwriting expertise of aiSure to the reinsurance side. I am convinced that our collaborative approach will enable us to support even more companies on their journey towards AI implementation,” said Michael von Gablenz, Head of Insure AI at Munich Re.

aiSure is designed to reflect the probabilistic nature of AI, where even well-constructed models can produce incorrect outputs. Its parametric-like structure allows claims to be settled quickly, based on measurable performance data, without lengthy investigations.

“This isn’t about system uptime or cyber incidents—it’s about whether the AI’s outputs are actually accurate,” added Bertram. “Our underwriting focuses on the AI model itself, what it does, how its outputs are used, rather than the insured’s respective industry. That opens the product to any company commercialising AI, from retailers licensing fraud-detection models to manufacturers selling quality-control solutions.”

The coverage complements existing cyber and technology E&O policies, which continue to address operational risks such as outages, data breaches, and negligent deployment.

The partnership supports Mosaic’s wider strategy to promote responsible AI adoption and demonstrate innovation in underwriting emerging risks. Mosaic’s cross-functional AI working group, led by Bertram, manages AI usage in underwriting and claims, establishes standards for responsible application, co-ordinates pilot programmes, and monitors how AI is transforming the risk landscape for clients.

Cyber, including technology E&O, is one of eight specialty lines underwritten by Mosaic, alongside environmental liability, transactional liability, financial institutions, political risk, political violence, professional liability, and specialty casualty.

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According to Blue Marble, the recent floods in Aceh were among the most devastating climate events in the region this year.

Torrential rainfall is said to have submerged farmland, disrupted livelihoods, and tested resilience across entire communities.

“When extreme rainfall crossed the predefined scientific threshold, the system activated automatically,” the firm stated, adding that the payout illustrated parametric insurance operating exactly as designed.

Blue Marble said that funds were disbursed directly to cooperatives and farming communities, and that payments were delivered rapidly, when liquidity mattered most.

The firm observed that objective, science-based triggers reduce ambiguity, while automated mechanisms help minimise delays.

“Immediate liquidity enables farmers to replant, stabilise income, and protect their families, without months of uncertainty. This was not just a payout. It was a record-setting demonstration of what climate risk protection should look like in practice,” Blue Marble went on.

Iwan Ariantoa, Head of ACG Cooperative, commented, “Through this insurance, losses due to reduced harvest yields can be partially compensated, so farmers still have capital to continue maintaining their farm and preparing for the next harvest season. This insurance is not only a protection instrument, but also supports the economic sustainability of farmers.”

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The tool enables wholesale and retail brokers to price parametric flood cover within minutes, simplifying a process that has traditionally been complex and time-consuming.

By integrating Liberty Mutual’s pricing engine with the Floodbase Platform’s API, the solution delivers the speed, consistency, and efficiency required to serve the small- to mid-sized commercial insurance market.

Parametric flood products have matured, now supporting large-area policies that transfer economic loss risk on a global scale, including coverage for US municipalities, Colombian farmers, and nationwide property portfolios in Italy.

With flood events in the United States becoming more frequent and severe, alongside rising National Flood Insurance Program premiums, parametric flood insurance is increasingly seen as a valuable complement to traditional property coverage, including protection against non-damage business interruption losses.

Despite growing demand, private market capacity continues to lag behind US flood risk, with two-thirds of modelled losses underinsured. Whereas previous limitations were largely linked to basis risk and product standardisation, the main barrier today is scalable distribution.

The new instant quoting application addresses this challenge by allowing brokers and managing general agents to integrate large-area parametric flood products into automated quoting and rating workflows.

With multiple optimised structures and pricing options, the tool makes policies straightforward to quote, simple to position, and easy to transact, enabling parametric flood insurance to be distributed efficiently across small- and mid-sized commercial markets, rather than remaining confined to complex, bespoke arrangements.

Jean-Christophe Garaix, Head of Parametrics & Agriculture at Liberty Mutual, commented: “This collaboration enables us to respond to evolving flood risk with faster, more adaptable solutions. It’s the same coverage—just delivered faster and with far less friction, enabling the brokers to effectively explore and customise a client’s flood coverage in seconds before even emailing an underwriter. That not only improves the client and distribution experience, it enables us to respond to evolving flood risk with novel parametric products for small-and-medium market segments.”

“Parametric flood can be an effective risk management instrument bridging protection gaps in traditional policies for small-and-medium businesses in the US – but that requires rapid distribution at scale,” added Bessie Schwarz, Co-founder and CEO of Floodbase.

“Liberty’s new instant parametric flood quoting solution solves that, giving US brokers and MGAs the flexibility to embed rapid parametric flood cover into their own quoting environments, enabling scalable distribution across small- and mid-market segments.”

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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.

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