SUVA, Jan. 20 (Xinhua) -- The magnitude of economic and social losses caused by recent natural disasters including Tropical Cyclone Winston in 2016 emphasizes the importance of having adequate insurance coverage and enhancing insurance affordability in Fiji, local media reported Monday.
Reserve Bank of Fiji Governor Ariff Ali said the Insurance Act 1998 is now more than 20 years old and needs to be reviewed to take into account inclusive insurance coverage, according to Fiji Broadcasting Corporation news website on Monday.
Ali said the Act is being reviewed with assistance from the International Monetary Fund.
He said on Monday that recent industry developments and supervisory practices need to be incorporated into the legislation.
"These developments include exploring the fronting arrangements, the possibility of allowing captive insurance frameworks, and further clarity around the legal provisions for inclusive insurance."
Ali said the insurance industry should not only promote insurance awareness to the general public but also develop and offer innovative insurance solutions that meet the needs and is affordable for all Fijians.
The magnitude of economic and social losses caused by recent natural disasters emphasizes the importance of not only having adequate insurance coverage in place but also enhancing insurance affordability.
The major natural hazards faced by Fiji are cyclones, floods and droughts.
Severe Tropical Cyclone Winston was the most intense tropical cyclone in the Southern Hemisphere on record, as well as the strongest to make landfall in the Southern Hemisphere.
It was a Category 5 Severe Tropical Cyclone that killed 44 people in Fiji in 2016. It was also the most costly cyclone in the South Pacific basin with damages costing 1.4 billion U.S. dollars.