Fiji’s domestic insurance sector has reached an impressive milestone in 2024 with a gross premium income of $476 million, as revealed in the most recent Insurance Annual Report presented to Parliament. This achievement demonstrates a continuing upward trend, with the life insurance sector contributing $203.1 million, reflecting a 3.2% rise due to strong demand for endowment products. Meanwhile, the general insurance sector jumped by 11.9% to $272.9 million, propelled by growth in various insurance categories.
Throughout 2024, a total of $254.2 million was paid out in claims and policy settlements, up from $244.5 million in the previous year. Life insurers settled $139.3 million, mainly for matured policies, while general insurers disbursed $114.9 million, primarily for medical and motor vehicle claims.
The profitability of the industry saw a substantial improvement, with profits doubling to $70.8 million after tax, mainly due to reduced outgoings and positive underwriting results. Both life and general insurers contributed significantly to the profit, with earnings of $35.7 million and $35.1 million, respectively. Furthermore, the industry’s total assets grew by 7.5% to reach $2.9 billion, with life insurers holding the majority share of the assets.
Looking forward, the outlook for 2025 remains positive, with expectations of continued robust performance supported by projected 3.2% economic growth in Fiji. Nonetheless, potential challenges such as rising claims, climate risks, cyber threats, and geopolitical tensions are identified as areas of concern.
The steady performance in 2024 mirrors the sector’s resilience post-COVID-19, as demonstrated in previous years where gross premium income rose by 7.5% to $440.7 million in 2023. This consistent growth trajectory underscores a promising future for Fiji’s insurance industry, significantly contributing to the nation’s economic stability and reflecting a strong financial foundation. The positive evaluations from financial authorities highlight an optimistic horizon for the sector, emphasizing its critical role in bolstering economic resilience and consumer confidence throughout Fiji. Despite challenges like increasing claims payments and reinsurance costs, strategic measures are being implemented to ensure continuous growth and innovation in the industry.