The Reserve Bank of Fiji has released its 2023 Insurance Report, highlighting a substantial reduction in unresolved complaints and improved resolution times within the insurance sector. This demonstrates ongoing efforts to bolster consumer protection and enhance financial resilience, particularly in the face of climate-related challenges.
Assistant Minister for Foreign Affairs Lenora Qereqeretabua commended the Reserve Bank’s expansion of parametric insurance, which utilizes weather data to expedite payouts to communities affected by natural disasters. However, she emphasized the need for increased installation of weather stations in remote regions to maximize the effectiveness of these insurance products, ensuring timely support for vulnerable populations. Additionally, the committee advocates collaboration between the Ministry for Public Works, Transport, and Meteorological Services and other stakeholders to facilitate this installation.
Notably, Qereqeretabua also called for future reports to incorporate gender-disaggregated data, enhancing transparency regarding the workforce in the insurance sector and the demographics of beneficiaries, which aims to foster diversity and inclusivity.
Trade Minister and Deputy Prime Minister Manoa Kamikamica reported that Fiji’s insurance sector witnessed remarkable growth, with premiums reaching an unprecedented $440.7 million in 2023. Despite challenges such as rising reinsurance costs and a surge in claims, all insurers reported profitability, indicating stability within the industry. Kamikamica acknowledged the Reserve Bank’s proactive stance in addressing emerging risks, including cyber threats that are particularly relevant for small and medium-sized enterprises.
However, Opposition MP Praveen Kumar expressed concerns about premature policy surrenders that lead to significant financial losses each year. He urged for stronger consumer protection regulations and enhanced transparency from insurance agents to ensure that customers fully comprehend their policy terms.
Finance Minister Professor Biman Prasad attributed the sector’s expansion to the broader economic recovery in Fiji, forecasting an optimistic outlook for 2025, while underscoring the importance of reinforcing the insurance industry as a pillar of economic stability.
Several recommendations emerged from the discussions, focusing on enhancing weather station coverage, expanding micro-insurance options, and improving data collection regarding gender in insurance. These initiatives are poised to make the sector more inclusive, transparent, and responsive to the needs of Fiji’s vulnerable communities.
The continued investment in these areas reflects a positive trajectory towards enhancing financial security and resilience for all Fijians, particularly in the face of climate change and economic fluctuations.
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