The Parliamentary Standing Committee on Economic Affairs in Fiji has pinpointed critical areas in need of improvement within the insurance industry, emphasizing the urgent requirement to modernize the 1998 Insurance Act. This was articulated by Assistant Minister in the Prime Minister’s Office, Sakiusa Tubuna, during the presentation of the Reserve Bank of Fiji’s insurance review report in parliament.
Despite the insurance sector demonstrating resilient performance following the COVID-19 pandemic—with total industry assets rising from FJD 2.3 billion in 2021 to FJD 2.5 billion in 2022—the Act needs to be updated to align with contemporary requirements. Tubuna noted several issues, including increasing policy terminations from surrenders and forfeitures, a lack of consumer awareness, and insufficient digital engagement to improve insurance literacy.
In relation to the existing structure, Tubuna raised concerns about the dual role of the Reserve Bank of Fiji, which serves as both regulator and complaints adjudicator, potentially undermining public confidence in the system. The report now awaits parliamentary debate, which Tubuna hopes will stimulate significant policy advancements aimed at rebuilding trust within Fiji’s insurance industry.
These concerns echo findings reported by the Consumer Council of Fiji, which has emphasized the importance of updating the Insurance Act to promote fairness and transparency for consumers. Previous discussions have highlighted the necessity for clearer policy language to enhance understanding among policyholders and advocated for tighter regulations to address the surge in consumer complaints.
Moreover, Minister for Finance Professor Biman Prasad reiterated the government’s commitment to an evolved insurance framework in partnership with the Consumer Council, aiming to bolster protections for consumers. Recent reports have reflected notable industry growth, but ongoing challenges remain, particularly in health insurance practices and complaints resolution. The Reserve Bank’s establishment of the Office of the Financial Services Ombudsman has proven beneficial, successfully resolving a majority of insurance-related complaints in 2023.
Overall, the movement towards a revised legislative framework signifies a hopeful trajectory for Fiji’s insurance sector. As the government and stakeholders work collaboratively to address existing gaps, there is optimism for enhanced consumer trust, improved insurance literacy, and ultimately a more robust financial environment for the Fijian public.
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