Insurance
From The Report: Papua New Guinea 2016
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In Papua New Guinea insurance makes up a small part of the economy by international standards, with the penetration rate at less than 2% of GDP compared to a global average of 7.5%, according to the UN Development Programme. Insurance in the country is also a sector of great opportunity. Access is straightforward given the regulations and low capital requirements, so international participation is high and newcomers are relatively free to enter. In addition, because penetration is low, the market is well placed to grow.

This chapter contains a round-table with Salamo Elema, Acting Insurance Commissioner; Wayne Dorgan, Managing Director, Pacific MMI Insurance; and Philip Tolley, Managing Director, Capital Insurance

Articles from this Chapter

Overview

Steady hands: While challenging, the sector has a lot to offer strong players
OBG
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In Papua New Guinea insurance makes up a small part of the overall economy when compared to international levels. The penetration rate as a percentage of GDP is under 2%, while the global average is 7.5%, according to the UN Development Programme. Insurance in the country is also a sector of great opportunity. Access is straightforward given the regulations and low capital requirements, so international participation is high and newcomers are relatively free to enter. In addition, because…

Overview

Room for growth: OBG talks to Wayne Dorgan, Managing Director, Pacific MMI Insurance; Salamo Elema, Acting Insurance Commissioner, Office of Insurance Commissioner (OIC); and Philip Tolley, Managing Director, Capital Insurance
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Interview:Wayne Dorgan,Salamo Elema andPhilip Tolley To what extent have repetitive fires been affecting the growth of the insurance industry and how they should be contained? WAYNE DORGAN: Although the idea of a risk management association sounds appealing, there is not enough capacity domestically to form one, as the science of underwriting is a very detailed one. In any case, contrary to some perceptions, the issue of repetitive fires is not a risk management issue in Papua…

Analysis

Going big: The country has surpassed its peers in the micro segment
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As one of the least insured countries in the world, with insurance penetration as a percentage of GDP under 2%, Papua New Guinea has made micro-insurance a priority in order to help increase the uptake of policies. The public sector, insurers, donors and other parties have been working together to come up with solutions that could help to get more people insured. As in many countries, especially those in the Pacific region, micro-insurance is a challenge, and the exact way forward is still…

Analysis

Mother nature: Risk posed by natural disasters has created a potential market, yet insurers must build the sector from the ground up
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Farms in Papua New Guinea are vulnerable to natural disasters and other risks, and this suggests the need to insure agriculture. Index-linked agricultural insurance is currently available in many developing countries, such as Thailand, Mexico and the Philippines, as well as in many advanced economies like Japan and the US. Some insurers in PNG see potential in this type of coverage and could soon be offering policies to insure farms in the event of weather-related and other risks. In 2013…