By GEORGINA MICHAEL
Parametric Insurance has made a first payout of K18,400 through the Women’s Micro Bank Limited (Mama Bank) to three provinces following a recent earthquake.
There are about 3200 beneficiaries of this payout across Goroka, Lae and Madang who are provided with rapid financial support through Mama Bank due to the 6.6 magnitude earthquake around October and December last year 2025.
Parametic Insurance is an initiative that was introduced in PNG through a partnership between the UN Capital Development Fund (UNCDF), Mama Bank, Pacific MMI Pacific Reinsurance and other Development partners in Australia and New Zealand.
Pacific Reinsurance CEO Lolesh Sharma said: “Parametric Insurance gives payout to countries with very high informal sector which are faced with natural disasters. And I believe PNG has a very high rate of informal sector and I see no reason in the product growing. It’s great to see that women’s micro bank is our running our pilot, and it’s doubled in size in the last couple of weeks. The parametric Insurance is meant to pay out once in three years, however you guys are very lucky to have got the K18,400 paid out in the first year of operation.”
Pacific MMI CEO Darryl Williamson said: “This is excellent news for the customers of Mama Bank and Pacific MMI Insurance (PMMI) is delighted to participate in the unique cover that provides insurance protection against earthquake, cyclone, droughts and excess rainfall for Mama Bank’s customers.”
Mama Bank’s CEO Gunanidhi Das said: “Although the first payout is modest, it marks a significant milestone of Mama Bank’s 3200 customers across the three locations in PNG. It underscores our commitment to introducing innovative solutions at no cost to customers, deliver timely and reliable financial protection when communities need it the most during natural disasters.”
The 6.6 magnitude earthquake last year struck the Northern PNG, which activated a pre-agreed thresholds under the Parametric Insurance policy triggering the total payouts up to K18,400 made digitally within 14 days to ensure beneficiaries receive funds quickly and transparently.
Mama Bank’s customers with more than K50 in their accounts from those three affected areas in Papua New Guinea can now have access to the payouts that will be made directly to their accounts.