In 2023, the total combined assets of Fiji’s life and general insurance sectors reached $2.7 billion, marking a 7.9 percent increase from the previous year, according to the Insurance Annual Report 2023 recently presented in Parliament.
Governor of the Reserve Bank of Fiji, Ariff Ali, noted that the domestic gross premium pool has also grown, exceeding the record high of $409.9 million set in 2022, and reaching $440.7 million in 2023. He highlighted an uptick in underwriting activity within the sector.
However, the overall profitability of the Fijian insurance industry fell to $33 million over the year. This decline has been linked to rising total outgoings and an increase in net claims paid during the same period.
Despite challenges such as escalating reinsurance costs, higher claims, and affordability issues, Mr. Ali expressed optimism for the insurance sector’s steady performance to persist into 2024. Nonetheless, he warned that natural disasters, cyber threats, and ongoing geopolitical tensions could pose risks to this outlook.
To address these challenges, the Reserve Bank will focus on maintaining an effective and flexible regulatory framework for the insurance industry in 2024, facilitating innovative solutions and sound risk management practices.