Insurance
From The Report: Papua New Guinea 2020
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Papua New Guinea’s insurance market is closely indexed to the country’s economy, which prior to the Covid-19 outbreak in early 2020 had been projected to grow at an average of 3% per year through to 2022. However, the pandemic effectively shuttered PNG for several months, and reduced global demand for the commodities that drive its export earnings. The insurance market therefore faces an uncertain future. On the one hand, the impact of Covid-19 may pose a substantial challenge to the country’s health system and economy in the recovery period, with repercussions for insurers. On the other hand, the economic pressures caused by the crisis may result in healthy restructuring of the industry, particularly as measures to reduce transmission drive the uptake of digital insurance services. The sector’s future will also be contingent on the government’s ability to continue important financial sector reforms, as well as the level of demand for mega-project risk-mitigation services. This chapter contains an interview with Jeremy Norton, General Manager, Tower Insurance.

Articles from this Chapter

Overview

Staying afloat: Ongoing reforms and large-scale resource projects should help to boost insurance penetration amid difficult circumstances
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Papua New Guinea’s insurance market is closely indexed to the country’s economy, which prior to the Covid-19 outbreak in early 2020 had been projected to grow at an average of 3% per year through to 2022. However, the pandemic effectively shuttered PNG for several months, and reduced global demand for the commodities that drive its export earnings. As a result, multiple agencies now forecast that the country’s real GDP will contract in 2020, although a return to growth is expected in…

Analysis

Knock-on effect: The government’s plans to increase financial inclusion have opened up the potential for new mobile insurance products
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Since Prime Minister James Marape took office in May 2019, the government has continued to implement a number of strategies aimed at increasing the accessibility of financial services. The National Financial Inclusion Strategy 2016-20 seeks to promote digital services and more inclusive insurance, while the Financial Sector Development Strategy 2018-30 advocates the use of financial technology to advance branchless banking services in rural communities and the development of a curriculum…

Interview

Downsizing risks: Jeremy Norton, General Manager, Tower Insurance, on improving market penetration to ease pressure on premium price
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Interview:Jeremy Norton How has pressure on the global reinsurance price impacted Papua New Guinea’s insurance sector? JEREMY NORTON: Reinsurance costs have increased following adverse climate events, in particular in Caribbean and Pacific countries. Reinsurers have reduced their capacity in higher-risk markets – like PNG – transferring it instead to lower-risk geographies. As such, it has become more expensive for insurance companies in the country to procure reinsurance, leading to…