Fiji’s insurance industry achieved remarkable growth in 2023, with gross premiums totaling an impressive $476 million and total assets reaching $2.9 billion. The Reserve Bank of Fiji (RBF) detailed these accomplishments in its 2024 Insurance Annual Report, which was recently presented to Parliament by Deputy Prime Minister and Finance Minister, Professor Biman Prasad. RBF Governor Ariff Ali noted that the industry demonstrated significant resilience, even in the face of challenges such as rising claim costs and a more constrained reinsurance market. A key achievement was the increase in the sector’s solvency surplus, which grew by 22.6% to $688.5 million.
This growth was reflected in the increase in net claims and policy payments, which amounted to $254.2 million. Life insurers paid out $139.3 million, mainly for matured policies, while general insurers disbursed $114.9 million to cover medical and motor claims.
Governor Ali highlighted the Reserve Bank’s modernization agenda, including revising the Insurance Act 1998 and transitioning to IFRS 17 accounting standards. The focus is also on expanding climate risk insurance, with the support of a grant from the InsuResilience Solutions Fund aiding the development of new parametric insurance products. These products are designed to assist households vulnerable to climate-related challenges.
While the past year was significantly successful, Ali warned of potential challenges in the current year, such as climate-related claims, global economic disruptions, and geopolitical risks that could affect the industry. Despite these potential hurdles, the Reserve Bank is dedicated to maintaining a strong, innovative, and inclusive insurance sector.
Strategic initiatives implemented last year, including the introduction of new insurance products and collaborative efforts between the government and the Reserve Bank to enhance consumer protection, have reinforced the industry’s ability to support economic growth and resilience. The ongoing development of the insurance sector is crucial for ensuring financial stability and promoting inclusivity, allowing for a robust foundation as Fiji navigates anticipated challenges.