The review of the Superannuation and Life Insurance Act of Papua New Guinea (PNG) has been completed with recommendation put forth to the Bank of Papua New Guinea (BPNG) for deliberation on the proposed changes to the Act that would benefit companies and their customers going forward when it comes to life insurance and general insurance.
The Bank’s Acting Governor Mr. Benny Popoitai said the review was to ensure that going forward, these insurances will come under just one regulator- the BPNG.
He said currently there are two regulators for each of the insurances provided to clients of financial institutions.
“Prior to the review, it was under the Insurance Commissioner for general insurance and life insurance under the Bank of PNG, now that means insurance companies must have two reports and they report to two different regulators. So, it’s cost saving on the insurance companies to have one regulator,” explained the governor.
He said this was one of the recommendations put forth by the committee to improve cost of doing business in so far as insurance in concerned.
This recommendation is also consistent with the financial sector development strategy, not just a recommendation from the Superannuation and Life Insurance Review Committee.
Mr. Popoitai also said that the review was also done to ensure that life insurance and general insurance keep up with the changes in time.
“As we all know with the economic development, there are challenges in these sectors that need to be identified. Where deficiencies are identified, we need to improve so that amendments in the legislature or changes in the Act may be necessary.”
The Act itself was enacted in 2000 and it has been over 22 years now, something which Mr. Popoitai said is high time changes are made to it for the benefit of companies and their clients.
The committee started the review work on the Act in 2018 and was delayed due to the COVID-19 pandemic. However, the review was finally completed in 2022.
Meanwhile, the review program was a result of International Monitory Fund (IMF) diagnostic review, IMF assessment program in 2011 and resulted in the review of the financial sector development program and development strategy 2018 to 2030.
The report of the review was officially handed over the Acting BPNG Governor this morning in Port Moresby city, marking the close of the review program as well.