Insurance Industry Remains Resilient in 2020, Challenges to Get Young Generation Insured
Fiji’s insurance industry remained resilient in 2020, registering a positive growth, despite challenges during the COVID-19 pandemic and natural disasters.
This was highlighted by the Reserve Bank of Fiji Governor Ariff Ali when providing submissions to the Standing Committee on Economic Affairs.
He presented the Reserve Bank of Fiji’s Insurance Annual Reports for 2019 and 2020.
Governor Ali said the industry demonstrated both operational and financial resilience, reflected in available capital resources (solvency positions) remaining well above prudential requirements with all licenced insurance companies recording net profits after tax.
Total assets of the industry continued to grow from 2019 increasing by 9.4% to $2.1 billion attributed to the life insurance sector.
“The combined gross premium income of the insurance industry noted a marginal growth of 0.7% to $369.3 million, underpinned by the life insurance sector,” Governor Ali said.
“Gross premium as a percentage of GDP registered a marginal pick-up at 3.8% compared to 3.1% in 2019.”
The Reserve Bank of Fiji Governor Ariff Ali on April 19, 2022. Photo: Ronald Kumar
Young Challenge
Among the financial highlights in the detailed report, Governor Ali noted that a significant portion of Fiji’s young population did not opt for insurance.
He said younger people were of the mindset that they were too young to get insured and also that they would not have a need for it because they did not pose any serious illness.
Another reason was that the cost of medical evacuation was too high.
However, Governor Ali said he hoped that insurance companies would align their policies more locally given the opening of the Aspen Hospital in Ba, a private-public partnership outcome.
The partnership does not only give Fijians better health care services, now more equivalent to overseas treatment, it would bring down medical cost.
Under Section 165 of the Insurance Act 1998, RBF is mandated to submit the Insurance Annual Report to the Mnister for Economy by June 30 the following year, a requirement that the Central Bank continues to effectively meet.
Feedback: laisa.kabulevu@fijisun.com.fj
