Insurance
From The Report: Papua New Guinea 2019
View in Online Reader

With a low penetration rate of below 2%, Papua New Guinea’s insurance sector has significant growth potential. The economy is expected to benefit from a range of new extractive projects and this, coupled with growing awareness about the benefits of insurance coverage, is set to increase demand. However, some notable challenges will need to be addressed to ensure the long-term expansion of the industry. While efforts have been undertaken to modernise the sector in recent years, the legislation governing the industry is not fully aligned with international best practices, and uncertainty remains regarding the division of responsibilities between different regulatory authorities. Despite a host of challenges, efforts to expand coverage across PNG to lower-income households are being made, with micro-insurance a key driver of penetration. This chapter also contains an interview with Raho Samuel, Insurance Commissioner.

Articles from this Chapter

Overview

Policy pathway: Reforms aim at improving regulation and product offering
OBG
plus

With a low penetration rate of below 2%, Papua New Guinea’s insurance sector has significant growth potential. The economy is expected to benefit from a range of new extractive projects and this, coupled with growing awareness about the benefits of insurance coverage, is set to increase demand. However, some notable challenges will need to be addressed to ensure the long-term expansion of the industry. While efforts have been undertaken to modernise the sector in recent years, the legislation…

Interview

Strong cooperation: Raho Samuel, Insurance Commissioner, on the legislative reform strengthening the sector
OBG
plus

Interview: Raho Samuel How will changes to the Insurance Act affect the operating environment in the insurance sector? RAHO SAMUEL: The Office of the Insurance Commissioner has engaged with the relevant stakeholders to review the Insurance Act. This underlines the strong cooperation between the regulatory office and the general insurance industry. We have identified the amendments needed to improve the act and benefit the insurance sector as a whole. We looked at the insurance regulatory framework…

Analysis

Risky business: Mitigating the risk of natural disasters with greater coverage
OBG
plus

Insurance has an important role to play in disaster and climate risk management in Papua New Guinea, helping to ease the fiscal burden of extreme events such as earthquakes and floods. Timely and predictable payouts after such events can be highly beneficial in terms of improving investor security; however, current insurance penetration rates remain low. Ring of Fire Given PNG’s location within the Pacific Ring of Fire – where shifting tectonic plates give rise to volcanic eruptions and…

Overview

Digital disruption: Insurance technology (insurtech) taps premium growth potential in emerging markets
OBG
plus

Two of the biggest trends in global insurance in recent years are premium growth in emerging markets and the rising importance of technology across the supply chain. The latter has come to be referred to as insurtech, a potentially disruptive trend that heralds both threats to and opportunities for incumbents and newcomers alike. While technological solutions are being applied along the length of the insurance supply chain in advanced markets, their focus in emerging markets has primarily been on driving premium growth. Stronger growth in emerging and developing economies since the turn of the century has given rise to a swelling middle class. At…