Insurance industry unpopular, worth about K244 million

THE market size of the country’s insurance industry is about K244 million, according to Bank of PNG (BPNG).
This makes up about 5 per cent of the country’s total financial system.
BPNG assistant governor Ellison Pidik said life insurance in PNG was generally not popular.
He said less than 3 per cent of Papua New Guineans are taking up life insurance.
“If you see the whole country, those taking up insurance are mostly in the formal sector, especially those who are employed,” Pidik said.
He was speaking yesterday during launching of “Wantok Delite” an insurance product offered by BSP Life PNG in Port Moresby.
Pidik said it’s a real challenge to get insurance products rolled out to the rural areas.
“We (BPNG) are concerned at the very low penetration of life insurance throughout the country and it is a challenge,” he said.
“I encourage BSP Life and other insurance providers, licenced by Bank of PNG, to roll out more awareness and more education, both for those who are taking it up and just promoting insurance generally across Papua New Guinea.”
Pidik also appealed to Papua New Guineans to take life insurance seriously and invest in it. “I appeal to the public to put your money where it is safe,” he said.
“These are very good products, just like your savings products.
“If you are depositing with a savings and loans society or micro bank or a commercial bank, life insurance is another wonderful product.”