Press Release No. : 14/2022
Date : 01 September 2022
The 2021 Insurance Annual Report was tabled in Parliament today, 01 September 2022, by the Honourable Minister for Economy, Mr Aiyaz Sayed-Khaiyum. The Report, as mandated under the Insurance Act 1998 to be provided by the Reserve Bank of Fiji every 30th June, provides key highlights of the performance of the Fijian insurance industry, with an overview of developments in the global insurance industry, in 2021. Reserve Bank Governor, Mr Ariff Ali, in releasing the Report stated that “although the year 2021 had posed significant challenges to the international insurance and reinsurance markets, the global insurance industry had sustained its positive performance. On a similar vein, the Fijian insurance industry remained resilient in 2021, notwithstanding the prolonged impact of the COVID -19 pandemic, and underpinned by the absence of major catastrophes”.
The total assets of the Fijian insurance industry recorded a growth of 11.2 percent to $2.3 billion in 2021. The life insurance sector’s assets registered an increase of 10.5 percent to $1.8 billion, and the assets of the general insurance sector noted a stronger increase of 13.4 percent, to $510.8 million. The domestic gross insurance premium pool grew to $383.3 million in 2021, equivalent to 4.0 percent of Fiji’s GDP. The profitability of the industry remained intact with a reported combined net profit after tax of the life and general insurance sectors, at $58.6 million.
Governor Ali further emphasised that “the risk transfer role played by the insurance industry is vital to the sustainability of the economy, and is a necessary safeguard for the financial health of individuals, families, communities, businesses, financial institutions, and the economy as a whole. In this regard, maintaining a robust and effective regulatory framework for the insurance industry remains a key focus of the Reserve Bank’s supervisory responsibility”.
The outlook for the Fijian insurance industry is positive for 2022, on the back of the projected strong growth for the economy. Governor Ali however cautioned on the prevailing uncertainties, particularly risks arising from the global economy which could negatively impact the performance of the industry in the medium to long term.
The Reserve Bank, in reviewing the year 2021 for the insurance industry, further acknowledges the effective support and partnership of all industry stakeholders and development partners, in ensuring the continued soundness of the industry, and ongoing innovations to meet the insurance needs of all Fijians.