PNG Government told to focus on insurance industry

The Papua New Guinea Government needs to recognise the significance of the insurance industry towards the country’s economic well-being, according to a local insurance company.

Pacific Assurance Group (PAG) founder and director Johnson Tia stressed that no trade or business in other countries existed without being insured. 

He said too often nationally-owned businesses ceased operations due to disaster, fire or tribal fights.

Tia said being insured was one way to promote growth and continuity of locally-owned businesses.

He noted that Papua New Guinea’s public service sector does not have life insurance cover for its human resource.

“I want to stress that the government really needs to be involved and appreciates that insurance is the backbone to economic development,” Tia said. 

PAG commenced operations in 2006 with policies such as life, marine, fire, public liability, house and content, medical cover among others.

By premium pool, Pacific Assurance Group is the second largest insurer in the country, about K60 million in premiums (money companies paid to PAG to insure them) last year.

“We insure buildings, business, aircraft, ships, we like to partner with government and carry insurance forward,” Tia said.

“Papua New Guinea is the only country in the world that does not have life insurance for its staff, government employees.

“We do not even have a budget that covers it.

“The government does not understand the risks. 

“When old parliament and Pineapple Building went down, no insurance cover.

“Insurance can contribute in a lot of ways to the government and the country.

“We (Pacific Assurance Group) can insure everyday people but its better for the government to organise a system.

“The government has to take ownership of the insurance programme and make it as its initiative because we can do that,” he said.

PNG Today / The National