The life and general insurance sectors in 2023 saw their total combined assets reach $2.7 billion, marking a 7.9 percent increase compared to the previous year, according to the recently presented Insurance Annual Report 2023 in Parliament.
Ariff Ali, the Governor of the Reserve Bank of Fiji, noted that the domestic gross premium pool also showed growth, increasing from a record $409.9 million in 2022 to $440.7 million in 2023. He highlighted an uptick in underwriting activities during the year.
However, the combined profitability of the Fijian insurance industry fell to $33 million, a decline attributed to higher total outgoings and claims paid during the year.
Ali acknowledged the challenges posed by rising reinsurance costs, greater claim payments, and affordability issues but expressed optimism for the insurance sector’s stability into 2024. He warned, however, that risks such as natural disasters, cyber threats, and ongoing geopolitical tensions could impact this positive outlook.
The Reserve Bank plans to uphold an effective and flexible regulatory framework for Fiji’s insurance industry in 2024, promoting innovative solutions and sound risk management.