Insurance in Kiribati

The Kiribati Insurance Corporation (KIC) is the established private insurer for business in Kiribati. The Insurance Act Cap.45A, which commenced in 1981, identifies KIC as the direct or indirect insurer for Kiribati business, apart from reinsurance. The Insurance (Amendment) Act 2008 is also listed in the current legal framework. The Act requires separate accounts for employers' liability, fire, life, marine and motor insurance, with audits by the Director of Audit and actuarial valuation at least every three years. The Kiribati Financial Supervisory Authority describes licensing and supervision of insurers as part of its role, while the Ministry responsible for Finance and the KIC Board also have institutional responsibilities. A public register of licensed insurers and standard tariffs was not found in the reviewed sources. KIC offers motor insurance, including own-damage and third-party cover. KIC describes third-party motor cover as compulsory and publishes a third-party limit of $50,000 per event. Premiums use private and commercial risk rates. An excess applies to each claim, and a voluntary higher excess can reduce the premium. A multi-vehicle discount of 20% is available, while a no-claim bonus can reach 20% from the second year and 40% from the third year when the claims record qualifies. Property and commercial cover includes commercial fire, domestic fire, house owners and householders insurance. Marine policies cover cargo, vessels and transit. Aviation products include airport or operator liability and hull or liability cover. General accident and liability products include all risks, burglary, contractors' all risks, cash in transit, electronic equipment, travel, personal accident or illness, machinery breakdown, bonds, public liability, directors' and officers' liability and business interruption. Life insurance can cover accidental or illness-related death, maturity, death benefits, surrender and refunds. Eligibility, exclusions, premiums and limits depend on the policy. Life applications use a proposal form and may be paid through salary deduction or directly. The stated minimum premium is $5 every two weeks or $5 twice a month, with terms of 10, 15, 20 or 25 years or up to retirement age 50, 55 or 60. Current age plus five years must not exceed the selected retirement age for eligibility, and suicide and pre-existing illness exclusions apply. Workmen's Compensation is a separate work-injury protection system under Cap.102. The employer pays the insurance cost. A KIC policy can cover workplace injury and accidents on the journey between home and work when the journey falls within the insured employment activity. KIC liability applies only when the relevant cover exists and consent has been given, and the occupation stated in the policy limits the protection. The Kiribati Provident Fund (KPF) is a contribution-based savings fund, not risk or property insurance. Its recorded support includes partial withdrawal after at least six months of unemployment, up to 50% in the stated cases, a withdrawal of up to 50% at age 45 when the member remains employed, access at age 50 and a death special benefit of up to $1,500 for funeral assistance. The reviewed sources do not establish ongoing disability-income insurance or unemployment insurance through KPF. They also do not establish a general national health insurance scheme. Customers can apply or request changes directly through the KIC head office in Bairiki, Tarawa, or the Kiritimati branch for Kiritimati, Kanton, Fanning or Tabuaeran, and Washington or Teraina. No additional KIC office on other islands was established in the reviewed sources. Written policy changes use an endorsement issued through the General Manager. KIC may arrange international reinsurance when a risk exceeds its capacity. Claims depend on the policy. Life claims can concern maturity, death, surrender or refunds. Burglary claims require evidence of forced entry, details of the loss and a police report. Personal accident and illness cover excludes illness during the first 28 days and pre-existing illness under the stated conditions. Workmen's Compensation claims depend on the policy and police requirements. General claim deadlines, a dedicated ombudsman and a single standard complaint form were not published in the reviewed sources, so policyholders should obtain the applicable procedure from KIC and keep the policy, receipts, reports and correspondence. Disaster-risk financing remains less formal. A 2023 UNCDF and Pacific Insurance and Climate Adaptation Programme study examined demand and supply and identified parametric insurance as a possible solution. The Kiribati Development Plan 2024–2027 also lists risk transfer and parametric insurance for examination. The reviewed sources do not establish an active household or national catastrophe insurance product. A Disaster Resilience Fund, Cat DDO or other contingent public finance supports disaster response but is not an insurance policy.