FIJI’S insurance industry paid a record $280.4million in claims and policy payments in 2025, as medical and motor insurance continued to account for a significant share of general insurance payouts.
The 2025 Annual Insurance Report, tabled in Parliament, showed claims and policy payments increased from $261.8 million in 2024 amid higher activity across both the life and general insurance sectors.
Life insurers paid $145.1million, with 77.3 per cent relating to matured policies. General insurers paid $135.3 million, with medical insurance accounting for 34.3 per cent and motor insurance 33.5 per cent of general insurance claims.
The report said the ratio of claims and policy payments to gross premiums increased from 55 per cent in 2024 to 55.9 per cent in 2025.
It attributed the increase to higher claims frequency and severity, particularly in medical and motor insurance, as well as rising healthcare costs, inflationary pressures and increased life policy maturities.
Despite the higher claims, the industry recorded its highest-ever combined gross premium income of $501.5million, an annual increase of 5.4 per cent. Insurance penetration increased from 3.5 per cent to 3.7 per cent of GDP.
General insurance premiums increased by 11.8 per cent to $305.2million, marking the sector’s fourth consecutive year of double-digit growth.
Life insurance premiums, however, declined by 3.3 per cent to $196.3million, mainly because of fewer single-premium policies.
Combined net profit after tax also fell 3.5 per cent to $68.3 million, primarily due to weaker life insurance profitability.
Total industry assets increased to $3billion, with the report describing the sector’s balance sheet as robust and adequately positioned to meet policyholder obligations.
