Fiji’s insurance landscape: Let the policyholders beware

This study examines critical challenges within Fiji’s insurance sector, focusing on the interplay of policy wording clarity, regulatory frameworks, consumer protection, and legal doctrines such as ‘contra proferentem’ and ‘utmost good faith’. It explores how ambiguities in policy language, non-disclosure practices, and regulatory gaps undermine consumer trust and industry efficacy.

Adopting a qualitative methodology, the research analyses legal documents, court judgments, Reserve Bank of Fiji regulations, and secondary data through thematic and case study analysis. The study evaluates legislative evolution, agent competence, underwriting practices, and consumer interactions to identify systemic issues.

Key findings reveal significant deficiencies in transparency, including delayed policy documentation, ambiguous exclusion clauses, and inadequate agent training. Legal principles are inconsistently applied, while regulatory frameworks prioritise prudential oversight over consumer protection. Public distrust stems from claim denials, unethical agent practices, and insufficient disclosure of coverage terms.

The study underscores the urgency for regulatory reforms, including enhanced agent training mandates, standardised policy language, and robust consumer education initiatives. It advocates for an independent regulatory body to enforce transparency and accountability, ensuring alignment with global best practices in insurance governance.

This study, one of the comprehensive analyses of Fiji’s insurance landscape, contributes novel insights into the intersection of legal doctrines, regulatory inefficiencies, and consumer vulnerabilities in a developing Pacific Island context. It proposes actionable strategies to rebuild trust, improve policy literacy, and fortify the sector’s resilience against climate-related and economic risks.