FIJI might be attractive for tourism and a nice place to visit but it is very hard to insure, says Marsh Pte Ltd branch manager Wayne Wong.
He made the comment during a submission to the Standing Committee on Economic Affairs on the Reserve Bank of Fiji 2018 Annual Report yesterday.
Mr Wong said Fiji was not attractive for reinsurers.
“They know if they invest in Fiji they are going to lose, at least one out of three years they are going to have to pay up,” he said.
“If they jump in the wagon this year and pull out next year, and hopefully nothing happens, they might make some dollars but it is not a long term thing.
“They would rather stick their money to Europe where there is no cyclones.”
He said parametric insurance was something the Government might need to look into.
Meanwhile, parametric insurance is a type of insurance that does not indemnify the pure loss, but ex ante agrees to make a payment upon the occurrence of a triggering event.
