PARAMETRIC INSURANCE PAYOUT BY WOMEN’S MICRO BANK

BY RAYLEEN WANJIMAN

Women’s Micro Bank Limited, in partnership with MMI and Pac Re Insurance has issued parametric insurance payouts to support customers affected by last year’s 6.6 magnitude earthquake.

A total of 3,200 beneficiaries in Lae, Madang, and Goroka received their claims to help them recover the from the disaster.

The October and December 2025 earthquake, which reached 6.6 magnitude and struck northern
PNG, activated pre-agreed thresholds under the parametric insurance policy, triggering total
payouts of PGK 18,400 made digitally within 14 days to ensure beneficiaries received funds
quickly and transparently.

“Although this first payout is modest, it marks a significant milestone for Mama Bank’s 3,200
customers across three locations in Papua New Guinea. It underscores our commitment to
introducing innovative solutions- at no cost to customers- deliver timely and reliable financial
protection when communities need it most,” said Mama Bank CEO, Gunanidhi Das.

Parametric insurance differs from traditional insurance by triggering payouts based on pre
defined data thresholds, such as earthquake magnitude or rainfall levels, rather than individual
loss or damage assessments.

The initiative was introduced in PNG through a partnership between the UN Capital
Development Fund (UNCDF), the UN Development Programme in PNG, UN University
Institute for Environment and Human Security, Mama Bank, local insurer, Pacific MMI, Pacific
Reinsurance, and development partners, Australia and New Zealand.

“This is excellent news for the customers of Mama Bank and Pacific MMI Insurance (PMMI)
is delighted to participate in this unique cover that provides insurance protection against
earthquakes, cyclones, drought, and excess rainfall for Mama Bank’s customers,” said Pacific
MMI CEO, Darryl Williamson.

“The policy is specifically aimed at helping farmers, fishers, MSMEs, informal sector workers
and other climate-vulnerable groups. The recent claim payments illustrate the benefits of this
cover and PMMI is proud to pay the claim losses quickly and professionally.”

Bank CEO Gunanidhi Das said the payout demonstrates the Bank’s commitment to financial inclusion for women and emphasized plans to expand the product nationwide to reach even more women in the future.

Parametric insurance represents a new approach in PNG, ensuring timely support and greater resilience for women across the country.