Low insurance penetration in Fiji presents both a challenge and an opportunity for growth within the country’s financial sector. Tarlochan Singh, chief executive officer of AMA Insurance Company (AIC), emphasized that a significant segment of Fiji’s population remains uninsured, indicating a critical need to enhance public understanding of insurance products and their benefits.
“There’s a very low penetration of insurance throughout Fiji,” Mr. Singh remarked during the official launch of AMA Insurance in Fiji on Tuesday. He underscored the importance of educating consumers about insurance, allowing them to make informed decisions. “We want to ensure that people understand what insurance is, and they can make up their minds to have it or not to have it. It’s ultimately the choice of the consumer, but we want to give that choice to the consumer to be able to do it.”
AMA Insurance, the Fijian subsidiary of Apia Insurance in Samoa, enters a competitive market, which Mr. Singh describes as an “exciting time” for both Apia Insurance and the broader Fijian insurance landscape. He noted that increased competition within the general insurance sector is beneficial, as it meets the needs of the clientele in Fiji.
To address the low insurance uptake, AIC plans to launch a phased product offering that begins with homeowners and motor vehicle insurance policies. The company also intends to venture into the small and medium enterprise (SME) and broader business markets within a month, followed by the introduction of additional insurance lines. Mr. Singh emphasized the company’s commitment to innovation and the introduction of new products as part of its expansion strategy.
Moreover, Mr. Singh highlighted the importance of reinsurance arrangements in maintaining industry stability. “In the insurance industry, it’s very vital for us to have what we call reinsurance, and we are glad to have that,” he stated. Industry experts have previously noted that low insurance uptake in developing markets can often be attributed to limited awareness, affordability concerns, and a lack of trust in financial products.
Mr. Singh affirmed that addressing these issues—understanding and access to insurance—will be central to AIC’s approach in Fiji, which holds potential for significant growth in the sector, creating a more informed and secure financial environment for the population.
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