Insurance
From The Report: Papua New Guinea 2014
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The market has seen several new entrants in recent years, with the total number of licensed insurance underwriters reaching 14 in 2014. While limited in size and reach, the insurance market in PNG recorded double digit growth in five years to 2013. Driven by the non-life corporate segment, growth has attracted a number of new players. However, the market remains shy of its potential, with low penetration for retail products, while large mining and hydrocarbon projects typically have their risks insured offshore. Establishing and enforcing consistent rules will be key to supporting medium-term growth. Expanding penetration for individuals and businesses will be critical as well, in line with the state’s financial inclusion strategy. This chapter contains interviews with Wayne Dorgan, Managing Director, Pacific MMI Insurance.

Articles from this Chapter

Overview

Robust growth draws in more competition and new regulations are in the works
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While limited in size and reach, the insurance market in Papua New Guinea recorded double-digit growth in the five years to 2013. Driven by the non-life corporate segment, growth has attracted a number of new players. Although the market appears crowded for its size, underwriters have maintained profitability on the back of low loss ratios in key segments. Yet the market remains shy of its potential, with most larger mining and hydrocarbon risks insured offshore and low penetration for retail products. As…

Analysis

Increasing penetration through microinsurance products
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With 94% of non-life (non-compulsory third-party motor cover) premiums stemming from corporates and the lion’s share of life coming from group policies, the scope for expanding insurance penetration in the market is vast. Yet with GDP per capita of $2200 in 2013, according to Standard & Poor’s, scaling products down will be key to driving volume and premium growth. While the government is focusing on micro-bank products in its financial inclusion strategy, the bundling of microinsurance with…

Interview

OBG talks to Wayne Dorgan, Managing Director, Pacific MMI Insurance
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Interview:Wayne Dorgan What would you say is the relevance of microinsurance in Papua New Guinea? WAYNE DORGAN: Microinsurance is the fastest-growing microfinance product in the world. Here in PNG we used to call it insurance for the grassroots, as it was first implemented with the idea of targeting the bottom end of the market – mainly subsistence farmers – by offering the smallest premium at PKG0.12 ($0.04) per day. At the moment there are 24 general insurance entities in the country,…