The Fijian insurance industry experienced a significant growth in its gross premium income in 2023, rising by 7.5 percent to reach a record $440.7 million for the second consecutive year since the COVID-19 pandemic, as reported in the Insurance Annual Report 2023, which was recently presented in Parliament.
Both the general and life insurance sectors demonstrated increased underwriting activity. The general insurance sector saw a robust growth of 10.3 percent, totaling $243.9 million, while the life insurance sector experienced a 4.2 percent increase in gross premiums, amounting to $196.8 million.
In terms of financial outgoings, the total net policy payments and claims settled by the insurance industry in Fiji rose to $244.5 million in 2023, compared to $216.1 million in the previous year.
The report highlighted that underwriting activity has reached an unprecedented high for two consecutive years, with both life and general insurance sectors reporting notable increases in gross premium income. The positive performance is expected to contribute to strong solvency and liquidity positions along with satisfactory earnings heading into 2024.
However, the report also cautioned that escalating claim payments, rising reinsurance expenses, and affordability issues could pose challenges to the profitability of the Fijian insurance industry moving forward.