The insurance industry in Fiji is concerned that the solvency requirements set out in a draft insurance law currently under review would weaken the position of insurance companies if implemented.
This concern was reflected by Mr Inia Naiyaga, managing director of Sun Insurance, while making submissions to the Parliamentary Standing Committee on Economic Affairs on the Reserve Bank of Fiji Insurance 2018 Annual Report, reported Fiji Village.
He added shareholders would have to inject more capital into their insurance company. If they were to fail to do so or are unable to meet the solvency requirements, then the company would have to close down.
Mr Naiyaga said that the Reserve Bank has reassured insurers that discussions would continue with them before the Act is finalised.
Insurers are also concerned that the Reserve Bank might allow insurers overseas to open front offices without having any actual presence in Fiji.
The Reserve Bank is reviewing the insurance law which currently dates to 1998. The review aims to modernise the Insurance Act which is more than 20 years old.