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The Reserve Bank of Fiji (RBF) has simplified the process for obtaining insurance from offshore.
In a statement, RBF Governor Sada Reddy said effective from July 1, people wanting to purchase cover not available locally would no longer be required to obtain multiple quotes from the domestic market, as was previously the case, even when it was known that local insurers could not provide the cover.
Reddy said the administrative changes were made following concerns raised by stakeholders in the insurance industry, as well as those of the RBF.
On the overall policy, he explained that offshore placement for insurance is only permitted where such insurance is not available through locally licensed insurers in Fiji, or where the cover may be at least 15 percent cheaper than that offered locally.
“The only other instance in which insurance cover can be sought from offshore is where it is in the public interest to purchase the cover from abroad,” Reddy said.
He issued a reminder that it is illegal to place Fiji insurance business abroad without the Reserve Bank’s prior approval or to place business with an overseas broker directly.
