The lack of local insurance providers leaves little room for competitors to negotiate lower premiums to affordable levels for the low income target market, says Housing Authority of Fiji acting CEO.
Isikeli Navuda noted this while presenting at a recent stakeholder’s seminar on property insurance.
“With current underwriters, HA has to maintain both the “self-insured retention” (aggregate) and “policy excess” running parallel annually,” he said.
“This, we believe, is unfair, as insures should maintain only or two at any one time.”
Mr Navuda pointed out that with after premiums normally increases for the new insurance period after natural disasters, customers sometimes could not afford further increases in their repayments and their mortgage accounts risked falling into arrears.
“Fencing, gates and other accessories such as hot water systems are not covered by insurance in an events of a natural disasters – cyclones, windstorms, hurricanes.
Its self-insured retention came to $550,000 while premiums paid settled at $296,356, as of July this year. The total premium collected was $846,356 while claims incurred and net claims paid were $403,448 and aggregated less claims paid at $146,552.