Fiji’s domestic insurance industry has reached a significant achievement in 2024 with a gross premium income of $476 million, as noted in the latest Insurance Annual Report presented to Parliament. This indicates a continued upward trend, with the life insurance sector contributing $203.1 million, reflecting a 3.2% rise owing to a strong demand for endowment products. Meanwhile, the general insurance sector surged by 11.9% to $272.9 million, driven by growth across various insurance categories.
Throughout 2024, $254.2 million were paid out in claims and policy settlements, increasing from $244.5 million in the previous year. Life insurers settled $139.3 million, predominantly for matured policies, while general insurers paid $114.9 million, largely attributed to medical and motor vehicle claims.
The industry’s profitability witnessed a remarkable boost, with profits doubling to $70.8 million after tax, largely due to decreased outgoings and positive underwriting results. Both life and general insurers contributed equally to the profit, posting $35.7 million and $35.1 million, respectively. Additionally, the industry’s total assets swelled by 7.5% to reach $2.9 billion, with life insurers holding the majority of assets.
The future outlook remains positive with predictions of continued robust performance in 2025. The expected 3.2% economic growth in Fiji is anticipated to further bolster the insurance sector. However, potential challenges such as rising claims, climate risks, cyber threats, and geopolitical tensions remain areas of concern.
This steady performance in 2024 echoes the sector’s resilience post-COVID-19, as seen in previous years where gross premium income surged by 7.5% to $440.7 million in 2023. This consistent growth trajectory signals a promising future for Fiji’s insurance industry, contributing significantly to the country’s economic stability and reflecting a robust financial framework. Challenges such as rising claims payments and reinsurance costs are acknowledged but are being addressed through strategic measures to ensure continuous growth and innovation in the sector. The positive assessments from financial authorities underscore an optimistic horizon for the industry, underlining its critical role in fostering economic resilience and consumer confidence across Fiji.