Fiji’s insurance industry recorded a sustained positive performance in 2025, with gross premiums increasing marginally by 5.4 per cent to a record $501.5 million.
The figures were revealed in the Reserve Bank of Fiji (RBF) 2025 Insurance Annual Report, following its tabling in Parliament by Finance Minister Esrom Immanuel.
Supported by a prolonged absence of major catastrophic events, the industry’s record gross premiums are equivalent to 3.7 per cent of GDP, compared to 3.5 per cent in 2024, the report stated.
Total industry assets also expanded by 5.2 per cent to $3.0 billion, while the aggregate solvency surplus remained strong at $688.1m.
However, escalating payouts compressed bottom-line growth. Gross claims and policy payments reached a record $280.4m in 2025 compared with $261.8m in 2024.
Life insurers paid $145.1m in policy benefits, with matured policies accounting for 77.3 per cent of total payments. General insurers settled $135.3m in gross claims, of which medical and motor vehicle claims represented 67.8 per cent.
According to the report, combined net profit after tax for the life and general insurance sectors fell by 3.5 per cent to $68.3m.
“Despite the decline, insurers remained profitable, supported by sound risk management and adequate capital buffers to absorb potential losses,” RBF governor Ariff Ali said.
He said the central bank continued to modernise its prudential supervision framework by developing and reviewing relevant standards and supervisory guidance in 2025.
“The Insurance (Budget Amendment) Act 2025 enabled the full implementation of the revised risk based solvency framework,” Mr Ali said.
“Engagement with the insurance industry on incorporating International Financial Reporting Standards (IFRS) also continued in 2025.”
Mr Ali said following a successful first year, the second phase of the InsuResilience Solutions Fund (ISF) program began last year- and continued to expand access to parametric microinsurance, helping vulnerable communities across Fiji strengthen their capacity to manage climate-related risks and disasters.
He said while the Fijian insurance industry looked forward to 2026 from a position of strength, risks are heightened at all fronts and insurers will need to adapt and respond quickly to geopolitical tensions, inflationary pressures, climate driven catastrophe losses and cyber vulnerabilities linked to Artificial Intelligence adoption.
“In 2026, the Reserve Bank will remain vigilant in carrying out its prudential oversight amid heightened uncertainty arising from economic volatility, changing customer demands and disruptive technologies.
“The bank will continue to seek the support of key stakeholders, including the Government, industry participants and development partners whose partnership it valued in 2025.”
