20 January 2020Analysis

Fiji considers allowing captive insurance frameworks

Fiji is considering allowing captive insurance frameworks to operate in its market, according to Ariff Ali, the governor of the Reserve Bank of Fiji (RBF).

Ali was presenting the RBF’s annual insurance report for 2018 to the Standing Committee on Economic Affairs.

Fiji’s Insurance Act 1998 is now more than 20 years old, Ali noted, and is undergoing a review with the technical assistance of the IMF, to modernise its insurance regime and incorporate recent industry developments and supervisory practices.

As well as potentially allowing captive insurance companies, Fiji is exploring its fronting arrangements and wants to provide further clarity around the legal provisions for inclusive insurance, Ali said.

According to the RBF, the total assets of the Fijian insurance industry grew by 9.2 percent, or $95.5 million, to $1.8 billion in 2018, underpinned by the life insurance sector. Insurance constituted around 8 percent of the total assets in Fiji’s financial system in 2018, with combined gross premiums growing by 7.5 percent to $347.9 million.