RBF lauds strong insurance industry form

Fiji’s insurance industry reported another year of strong performance in 2011 despite the high economic losses recorded globally, according to Reserve Bank of Fiji’s 2011 Insurance Annual Report tabled Prime Minister and Minister for Finance, Commodore Voreqe Bainimarama on August 28.

In the report, Governor Barry Whiteside attributed the strong form by the local industry to stable investment income and the notable absence of severe catastrophes during this period.

Whiteside said domestic insurance industry recorded a growth of 6.4 per cent in gross premiums to $221.2 million, a higher growth compared to 0.9 per cent in 2010.

He said improvement was noted in the solvency surplus of both the life and general insurance sectors in 2011.

The introduction of micro-insurance was further enhanced as part of the national initiative to promote greater financial inclusion through the provision of affordable insurance plans to low income earners.

Whiteside said RBF was pleased to note the increased effort of industry players in seeking to improve regulatory compliance and contribute to ensuring a sound and safe insurance industry for Fiji.

He added RBF will continue to develop the policy environment conducive to the growth of the insurance industry, as well as enhancing its supervisory role.

The 2011 Insurance Annual Report also includes highlights of developments in the international insurance market.

Globally, 2011 saw the highest economic losses from natural catastrophes and manmade disasters on record and the second highest insured losses ever.

The total economic losses significantly increased from the US$226 billion experienced in 2010 to a massive US$370 billion in 2011, while insured losses were reported at US$116 billion.

By Ropate Valemei