The global insurance picture - and where Fiji fits in

The terrorist attacks of September 11, 2001, generated higher premiums in the reinsurance market globally. The Fiji insurance market had already been adversely affected by the local political events of 2000, which may have left it in some ways better prepared to meet the world-wide crisis of the following year.

The onset of global terrorism also triggered a general tendency of reinsurers the world over to spread their resulting cost increases across many classes of insurance, including aviation, public liability, property, and marine coverage. These higher costs will costs will continue until the terrorist threat is removed.

However, despite the world shaking impact of global terrorism. the after-tax profits of general insurers in Fiji rose to $5.5 million 2001, and improvement of 44.7% over the $F3.8 million aftertax profits recorded in 2000. (Source - Reserve Bank of Fiji)

SUN Insurance of Fiji weathered these crises, and in 2002 is setting new company records for growth in total coverage and premium income despite the troubled times.

The growth of the South Pacific Stock Exchange has shown a marked increase in recent months. The value of listings on the market is rising as established businesses and entrepreneurs become aware that listing their enterprises on the market can help to raise capital and mature their companies.

Recently the government announced plans in its budget to restructure the troubled sugar industry, aiming to modernise Fiji Sugar Corporation operations to increase sugar yields and revenue. The government is also committed to tourism, and has played a primary role in supporting the development of new hotel projects, including major resort development at Natadola and condominium developer Trend West.

SUN Insurance of Fiji weathered the crisis of the past and views the future with optimism. In 2002, SUN Insurance set new company records for growth in total coverage and premium income despite the troubles of the past, and the outlook for the future remains positive.