The Reserve Bank of Fiji has unveiled its 2023 Insurance Report, emphasizing a significant decline in unresolved complaints and faster resolution times within the insurance sector. This progression highlights ongoing efforts to improve consumer protection and strengthen financial resilience against climate-related adversities.
Assistant Minister for Foreign Affairs Lenora Qereqeretabua praised the Reserve Bank’s initiative to expand parametric insurance, which leverages weather data to provide quicker payouts to communities impacted by natural disasters. She stressed the necessity for more weather stations in remote areas to enhance the effectiveness of these insurance products, ensuring that vulnerable populations receive timely assistance. Additionally, there is a call for collaboration among the Ministry for Public Works, Transport, and Meteorological Services, alongside other stakeholders, to support the installation of these vital weather stations.
Qereqeretabua also advocated for future reports to include gender-disaggregated data, boosting transparency regarding the workforce demographics in the insurance sector and the profiles of beneficiaries, fostering diversity and inclusivity within the industry.
Trade Minister and Deputy Prime Minister Manoa Kamikamica reported remarkable growth in Fiji’s insurance sector, with premiums totaling an impressive $440.7 million in 2023. Despite challenges such as escalating reinsurance costs and increased claims, profitability was reported across all insurance companies, which signals stability within the sector. Kamikamica acknowledged the Reserve Bank’s proactive approach in addressing emerging risks, particularly cyber threats that affect small and medium-sized enterprises.
Conversely, Opposition MP Praveen Kumar raised alarms about premature policy surrenders, which result in considerable financial losses annually. He highlighted the need for stronger consumer protection regulations and greater transparency from insurance agents to ensure customers fully understand their policy terms.
Finance Minister Professor Biman Prasad attributed the growth of the sector to Fiji’s broader economic recovery, predicting a positive outlook for 2025 while emphasizing the critical need to fortify the insurance industry as a fundamental element of economic stability.
Discussions yielded several recommendations aimed at boosting weather station coverage, expanding micro-insurance options, and enhancing data collection related to gender in insurance. These initiatives are set to foster a more inclusive, transparent, and responsive sector tailored to the needs of Fiji’s vulnerable communities.
Overall, these sustained investments and strategic recommendations project a constructive path toward enhancing the financial security and resilience of all Fijians, particularly in the context of climate change challenges and economic fluctuations. The ongoing commitment to improving the insurance framework in Fiji presents an encouraging outlook for the future.
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