Fiji’s insurance industry reached a remarkable milestone in 2024, recording a gross premium income of $476 million, marking its highest level to date, as reported by the Reserve Bank of Fiji (RBF). The announcement came during the tabling of the 2024 Insurance Annual Report in Parliament by Deputy Prime Minister and Minister of Finance, Professor Biman Prasad.
Despite the impressive growth in gross premiums, the sector saw a $30 million decline in combined profitability, attributed to increasing outgoings and net claims during the year. RBF Governor Ariff Ali highlighted the resilience of the Fijian insurance industry in his report, noting the correlation between the surge in gross premiums and the growth of Fiji’s economy.
The total assets of the insurance industry increased by 7.5% to reach $2.9 billion, with a significant improvement in the industry’s solvency surplus, which rose by 22.6% to $688.5 million. Governor Ali stated that, while the year lacked severe catastrophic events, licensed insurers reported a substantial rise in claims and policy payments amounting to $254.2 million. This included $139.3 million from life insurance payouts for matured policies and $114.9 million from general insurance mostly covering medical and motor vehicle claims.
Looking to the future, the RBF is working to modernize the regulatory framework, focusing on the ongoing review of the Insurance Act 1998 and preparations for the adoption of the International Financial Reporting Standard 17 (IFRS 17) for insurance contracts, expected to be implemented in Fiji in January 2025.
Moreover, the RBF has initiated efforts to expand access to climate risk insurance products through partnerships aimed at providing coverage for vulnerable households. In August 2024, a grant agreement was signed with InsuResilience Solutions Fund, facilitating the development of parametric micro insurance to aid communities at risk from climate change.
The outlook for the Fijian insurance industry in 2025 remains positive, although challenges loom due to potential increases in claims volumes and costs driven by climate-related events and geopolitical instability worldwide. Governor Ali emphasizes the importance of careful risk management strategies to navigate these uncertainties.
Overall, the Fijian insurance sector’s growth not only reflects a strengthening economy but also highlights commitment towards innovative solutions to ensure consumer protection and resilience amidst evolving challenges. The continuing development of this sector promises to bolster economic stability and protect citizens across Fiji.
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