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A new case study published by the Insurance Development Forum (IDF) features GEM’s contribution to a pilot parametric insurance solution developed for PNG DATACO Limited, the state-owned telecommunications company of Papua New Guinea. The initiative, a collaboration between the Pacific Catastrophe Risk Insurance Company (PCRIC) and WTW, addresses a long-standing protection gap for critical national infrastructure - submarine fibre-optic cables - frequently exposed to seismic hazards but historically difficult to insure. 

GEM’s role centred on providing the stochastic hazard simulations needed to underpin the insurance model. Using the OpenQuake Engine, GEM generated a set of site-specific hazard profiles for more than 100 key locations along the fibre-optic network, simulating 100,000 years of ground-shaking scenarios tailored to the seismic context of Papua New Guinea. The resulting data formed the basis for defining payout triggers that are both scientifically credible and compatible with USGS ShakeMap alerts - enabling rapid loss estimation after an earthquake. 

Unlike traditional indemnity-based insurance, parametric products rely on pre-agreed hazard thresholds to trigger fast payouts. This is particularly valuable for systems such as telecommunications, where damage assessments can be slow, but the need for swift service restoration is urgent. By integrating GEM’s open-source seismic models, the PNG pilot demonstrates how scientific modelling can be directly applied to financial resilience mechanisms in disaster-prone regions. 

The case study is part of a wider series released by the IDF Risk Modelling Steering Group (RMSG) highlighting practical applications of parametric disaster insurance in developing contexts. It illustrates how targeted investments in risk modelling can help build financial resilience, strengthen public services, and support faster recovery after extreme events. 

As interest in disaster risk financing grows, GEM continues to work with public and private partners to make earthquake risk data accessible and applicable to a broad range of use cases, including insurance, regulation, and emergency response. 

Read the full case study: http://www.insdevforum.org/wp-content/uploads/2025/04/IDF_Case_Study_PCRIC_PNG_2025-1.pdf