Background

The Insurance Sector in PNG is emerging and developing from a sector largely dominated by foreign participants servicing the international mining and other conglomerates to one that has a greater focus on the domestic market and the needs of local PNG citizens. New insurers are entering the market and international firms are realigning their business to better serve the community. A FIRST funded initiative to develop a risk based capital regime (RBC) has been well received by the sector and well supported by the insurance commission. Early in the process of the RBC project, industry representatives expressed a need for more timely and accurate industry statistics.

The project is largely arising from the RBC work as a natural extension to leverage and add further value with a limited investment. During the course of the RBC project, the government commissioned a report on the insurance sector (the ICCC report) that recommended more timely provision of statistical information. The beneficiary of the project is the Office of Insurance Commissioner (OIC) of Papua New Guinea. This project would enable OIC to respond to this recommendation.

Project

The GOAL of this project is to produce an enhanced set of financial returns for insurance supervision of the non-life companies.

The PURPOSE of this project is to strengthen the ability of the insurance commissioner to oversee the sector more efficiently and will establish a channel for regular flow of sector information which will help insurance companies to manage their business better through access to comparative statistics.

OUTPUTS:  The key outputs of the project are: (i) a draft strategy report ready for adoption that incorporates the government consensus and priorities on the role and main functions of CIC for review and consideration by the national authorities; (ii) CIC business plan ready for adoption in order to implement its strategy thus developed; (iii) a report with assessment and recommendations on the organizational structure and capacity building of the CIC in the context of the new strategy and business plan; (iv) development of a CIC staff training program with an action plan for its implementation; and  (v) delivery of a small train-the-trainer program.

Project LIFETIME is 12 calendar months from September 2008 till September 2009.

Project BUDGET is $95,000.

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