It is against the law to place Fiji insurance business abroad or to directly place business with an overseas broker without its prior consent
Much of the red-tape involved with the off-shore purchase of insurance cover not available locally, has minimised with the introduction of a revised policy by the Reserve Bank of Fiji (RBF), effective July 2009 – reported Fiji Times.
Offshore placement for insurance is only allowed where such insurance is not available through locally licensed insurers in Fiji, or where the cover may be at least 15% cheaper than the one offered locally.
Meanwhile, the central bank reminds that it is against law to place Fiji insurance business abroad or to directly place business with an overseas broker without its prior consent.
Sada Reddy, Governor, RBF, said: “The revision resulted from a review that was taken to help simplify the approval process when purchasing overseas insurance, following concerns raised by stakeholders in the insurance industry. Persons now wishing to purchase insurance for covers not available locally are no longer required to obtain multiple quotes from the domestic market, as was previously the case even though it was known that the local insurers could not provide the cover. This will certainly save time and be more efficient for all parties concerned. The only other instance, in which insurance cover can be sought from offshore, is where it is in the public interest to purchase the cover from abroad.”