PFIP Partners with BIMA to Provide Microinsurance Products in Papua New Guinea

Date: 
27 May 2015

The Pacific Financial Inclusion Programme (PFIP) and Bima launched a partnership to provide microinsurance products in rural Papua New Guinea (PNG). As a part of the partnership, PFIP will invest in Bima to bring convenient, affordable microinsurance products to low-income, rural, unbanked, or underbanked Papua New Guineans. The organization will provide two insurance products which are life insurance and hospitalization insurance. Bima aims to provide over 75,000 low-cost insurance policies to rural Papua New Guineans within two years, including 50% women and 90% rural-based. PFIP will support Bima’s plans to establish a local presence in Lae, Mount Hagen, and Madang. Bima will also provide education on insurance, prior to sales for the less educated and isolated populations. PFIP’s partnership and investment in Bima was made possible through the support of the European Union and the Australian Government, and through the commitment of the Bank of Papua New Guinea (BPNG) and its Governor, Loi Bakani.

“Insurance penetration as a percentage of GDP in Papua New Guinea is shockingly low, at less than 2%, compared to the global average of 7.5%.  Low income households are not covered because of four major obstacles; education, distribution, pricing, and premium collection.  Through our investment in Bima, we are excited about supporting a unique scalable business model between Bima, Digicel, and Capital Life Insurance to bring affordable and accessible insurance to the Highlands Region," said Roy Trivedy, the UN Resident Coordination in PNG. “The European Union along with Bank of Papua New Guinea are extremely pleased about our support to the Pacific Financial Inclusion Programme that made possible this investment in Bima, a mobile microinsurance platform, that will expand to the Highlands and make insurance more affordable for the people who need it most," said Ambassador Dihm.

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