Financial Services
What insurance should you buy in PNG? at a moderate level and that laws allow companies to set up with relative ease.
Business Advantage PNG asked Pacific MMI Insurance MD Wayne Dorgan for his recommendations.
Revisions or even an overhaul of the 1995 Insurance Act, which has not been revised in 18 years, are anticipated this year. In particular, a strengthening of Sections 36 and 37, which cover exemptions to PNG’s insurance laws whereby all companies domiciled within PNG must purchase insurance locally. The PNG LNG project was granted an exemption at government level and did its insurance dealings offshore and many companies associated with the project rode on its coat tails, gaining exemptions in a number of areas. ‘We’re hoping that will be tightened up,’ says Giddings.
PNG idiosyncrasies ‘In the Pacific, we have a lot of idiosyncratic problems,’ says Dorgan, explaining that thanks to, say, poor responses by the fire brigade, buildings will be insured at higher premiums as there is a higher chance of their burning to the ground. Poor internet services and infrastructure also mean that many of the calculations that are usually done online to work out costs must be done manually in PNG. However, with internet services slowly improving, such things may not be the irritation they are for much longer.
Pacific MMI Insurance’s Wayne Dorgan
All companies domiciled within PNG must have third-party motor vehicle insurance bought via the governmentowned Motor Vehicles Insurance Ltd and workers’ compensation supplied via a licensed PNG insurer.
For SME’s, a business pack (a selection of varied covers that provide businesses more wide-ranging cover in one policy) which can include property, liabilities, burglary cover, motor vehicle fleet insurance, money insurance and financial lines insurance. For those moving stock, marine cargo transit insurance is important, given the problems and delays in shipping and logistics. Remember that the type of insurance you need depends very much on your industry but health insurance is also recommended for all. When you analyse a business, one of its greatest assets is its staff. If you’re not protecting your staff, you’re really exposing your business.
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