Fiji’s insurance industry reached unprecedented heights in 2023, recording $476 million in gross premiums and increasing its assets to an impressive $2.9 billion. The Reserve Bank of Fiji (RBF) recently published its 2024 Insurance Annual Report, which was presented in Parliament by Deputy Prime Minister and Finance Minister, Professor Biman Prasad. According to RBF Governor Ariff Ali, the industry showcased remarkable resilience amidst challenges like rising claim costs and a tighter reinsurance market. A notable highlight was the sector’s solvency surplus climbing 22.6% to reach $688.5 million.
The rise in net claims and policy payments, totaling $254.2 million, indicates active participation from both life and general insurance sectors. Specifically, life insurers disbursed $139.3 million primarily for matured policies, while general insurers paid out $114.9 million for medical and motor claims.
Governor Ali emphasized the ongoing modernization of regulations by the Reserve Bank, including a review of the Insurance Act 1998 and guiding insurers in transitioning to IFRS 17 accounting standards. A forward-looking approach is evident in the sector’s efforts to introduce and expand climate risk insurance. The InsuResilience Solutions Fund provided a grant last year that enabled the development of new parametric insurance products, benefitting households exposed to climate-related risks.
Despite the successes of 2023, Ali cautioned about potential challenges in the current year, including climate-related claims, global economic shocks, and geopolitical risks, which could impact insurers. Nevertheless, the Reserve Bank remains committed to maintaining a robust insurance sector, promoting innovation, and ensuring the provision remains safe and inclusive.
Last year’s strategic moves, such as the implementation of new insurance products and the collaboration between the government and the Reserve Bank to enhance consumer protection, have solidified the industry’s role in supporting economic growth and resilience. The insurance sector’s progress reflects positive economic conditions and proactive regulatory measures, paving the way for continued stability and inclusivity.