Fiji's insurance sector reached a record high in aggregate gross premiums in 2022, totalling $409.9 million, as reported by the Reserve Bank of Fiji (RBF).
However, the industry also experienced a decrease in profit, with the general insurance sector's net profit after tax falling to $32.7 million from $41.9 million in 2021. This decline was attributed to a reduction in non-underwriting income.
A Fiji Times report revealed that the total assets of the insurance industry in Fiji stood at $2.5 billion in 2022, accounting for 9.0% of the Fijian financial system's total gross assets. RBF Governor Ariff Ali, in the 2022 Insurance Annual Report, stated that the Reserve Bank has maintained its focus on ensuring that the regulatory framework for the insurance industry remains effective and relevant.
A key development in the sector was the successful trial and implementation of online submissions of prudential returns via the Reserve Bank's financial sector information system. This digitisation effort has enhanced the efficiency of data analysis and reporting processes.
Ali also highlighted the importance of innovation and responsiveness to consumer needs in the insurance industry, especially in the context of the challenges posed by climate change and evolving customer expectations. He emphasised the necessity for the industry to balance growth with profitability, noting the impact of climate change on risk profiles and the demand for tailored insurance products.
“Entities that focus on technology-led innovation but remain customer centric will continue to succeed. In this regard, the Fijian insurance industry continues to be committed to driving micro-insurance initiatives as a disaster preparedness mechanism, designing, and offering superior value adding life insurance products, as well as ensuring the adequate coverage of corporate clients and important businesses in Fiji, through effective underwriting practices and reliable reinsurance arrangements,” Ali said.
Elsewhere in the island nation, the iTaukei Land Trust Board of Fiji has implemented a new medical insurance policy for 240 of its employees.
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