LOW insurance penetration in Fiji continues to present both a challenge and an opportunity for growth within the country’s financial sector.
AMA Insurance Company (AIC) chief executive officer Tarlochan Singh shared this saying a significant portion of Fiji’s population remains uninsured, highlighting what he described as a need to improve public understanding of insurance products and their benefits.
“There’s a very low penetration of insurance throughout Fiji,” Mr Singh said at the official launch of AMA Insurance in Fiji on Tuesday this week.
“We want to ensure that people understand what insurance is, and they can make up their minds to have it or not to have it.
“It’s ultimately the choice of the consumer, but we want to give that choice to the consumer to be able to do it.”
AMA Insurance is the Fiji subsidiary of Apia Insurance in Samoa.
Mr Singh described the current period as an “exciting time” for both Apia Insurance and the wider Fijian insurance market, pointing to growing competition within the general insurance sector.
“In general insurance, we’ve seen a lot of competition. Competition is good because that is what the clientele or the customers of the Fijian population need at the end of the day.”
AIC plans to roll out a phased product offering, beginning with homeowners and motor vehicle insurance policies.
The company intends to expand into the small and medium enterprise (SME) and broader business market within a month, followed by additional insurance lines.
Mr Singh said the company aims to introduce new products and innovation to the market as part of its expansion strategy.
He said the importance of reinsurance arrangements in maintaining industry stability.
“In the insurance industry, it’s very vital for us to have what we call reinsurance, and we are glad to have that.”
Industry observers have previously noted that low insurance uptake in developing markets can stem from limited awareness, affordability concerns, and lack of trust in financial products.
Mr Singh said addressing, understanding and access would be central to AIC’s approach in Fiji.
