POOR ECONOMIC CLIMATE IMPACTS LIFE ASSURERS IN FIJI

The Fijian life sector is suffering along with the country’s economy, according to Reserve Bank of Fiji Governor Savenaca Narube. Speaking at the launch of a new product from the Fijian arm of India’s leading assurer LIC, Mr Narube said that economic decline had forced some policyholders to default on premiums or even surrender their policies, while recent increases in terrorism activity also affected domestic markets. Mr Narube also noted that the introduction of international reporting standards meant that Fijian assurers had seen a fall in the asset values of the companies, thus decreasing their solvency surplus. Mr Narube said that assurers would need to revalue both sides of their balance sheets and act immediately to bring solvency surpluses to the required level.