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Inclusive Insurance Regulations Workshop Targeted At Lower Income Communities

Inclusive Insurance Regulations Workshop Targeted At Lower Income Communities
Reserve Bank Of Fiji
April 15
17:42 2016

Insurance regulators and supervisors from six Pacific Island countries gathered this week in Nadi to discuss how to develop and implement inclusive insurance regulations.

The workshop was hosted by the Pacific Financial Inclusion Programme in association with the Pacific Islands Regional Initiative (PIRI) and the Alliance for Financial Inclusion (AFI) and was held at the Sofitel Hotel in Nadi, from the 5th – 7th April.

The workshop was attended by supervisors from central banks, insurance commissions and private insurance companies from Fiji, Papua New Guinea, Samoa, the Solomon Islands, Timor Leste, Tonga and Vanuatu whom are all PIRI members.

Reserve Bank of Fiji, Governor Barry Whiteside said: “The objective of this workshop is to help our PIRI members build an enabling environment for inclusive insurance.

Mr Whiteside stated that in 2012, a micro-insurance study undertaken by the Pacific Financial Inclusion Programme concluded that most Fijians currently depend on loans from financial institutions, family and friends and moneylenders, to manage financial emergencies.

He added the recent Fijian Financial Inclusion Demand-Side Survey noted that only about 12 percent of the adult population in Fiji is covered by insurance.

“Such a low level of insurance penetration directly implies that the vast majority of our low income communities are vulnerable to sustain financial losses as a result of a disaster, whether this is manmade or natural,” Mr Whiteside said.

“This workshop was particularly timely for us in Fiji, as we continue to undertake rehabilitation actions after the devastation of Tropical Cyclone Winston.

“It allowed us to ponder on this very important subject and whether inclusive insurance could have assisted the recovery efforts of our people at this time.”

“These include the individual premium sizes are perceived as too low given the per-policy fixed costs, the premium calculation is seen as more complicated due to limited available data and the nature of the demand and risks of this segment remain unknown,” Mr Whiteside said.

“The insurance industry therefore needs to be incentivised to play an active role in the development of a national inclusive insurance strategy, and the Government is the only agency that can provide these incentives.”

He added the 2016 AFI Global Policy Forum to the upcoming 8th AFI Global Policy Forum that will be convened on this very island just five months from now, from the 6th to the 9th of September.

“The event will be co hosted by the Reserve Bank of Fiji and the Alliance for Financial Inclusion.

“We are sharing some of the hosting arrangements with our fellow PIRI members,” Mr Whiteside said.

 

Feedback: aatika.patel@fijisun.com.fj

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