Bank South Pacific joins life insurance industry

Business

LIFE insurance will now be offered by Bank South Pacific Life PNG after being issued a licence by the Bank of PNG last week.
BPNG deputy governor Gae Kauzi said it would become the fifth life insurance company and was expected to boost the growth of the “young” industry.
“BPNG is pleased to see an additional player come into the life insurance industry,” he said.
“The life insurance industry is regulated by BPNG separately from general insurance which is regulated by the office of insurance commission.
“It is a young industry with a lot of potential to grow.
“The total assets in the industry is at about K500 million at the end of 2017, with micro life insurance being the fastest growing area in the industry.
“At the end of 2017, the total level of micro-life insurance policies issued by just one company reached about 600,000 policies.”
BSP Group chief executive Robin Fleming said the bank’s entry into the insurance business was to provide a service to average Papua New Guineans.
“The key beneficiaries of these type of life insurance are not the corporate clients or the larger businesses, but ordinary Papua New Guineans,” he said.
“The first product that we have launched has been our consumer credit product attached to our unsecured personal loan.
“It is a risk-based product that ensures that anyone who has taken out a new personal loan with BSP has life cover from BSP Life.
“This ensure that if that person does pass away, that loan is covered by the loan insurance policy and is paid in full.”