Papua New Guinea’s insurance sector is regulated by two authorities, namely the Office of Insurance Commission
(OIC) under the Department of Treasury (DoT) and the Bank of PNG
(BPNG). The OIC is responsible for non-life insurance activities, while BPNG oversees life insurance. Under the Insurance Act of 1995 the OIC is responsible for administering general insurers, reinsurers, brokers and loss adjusters. The BPNG issues licences to life insurance firms and brokers in line with the Life Insurance Act of 2000. In terms of funding, the OIC’s activities are supported by a 1% levy charged on all premium income, while life insurers pay an annual licence fee. Under the Life Insurance Act of 2000, insurance contracts must extend beyond one year in order to be considered a life product. However, third-party liability vehicle insurance was made mandatory in 1974. All insurers in the country must be locally incorporated, apart from those licensed abroad, while all foreign insurers must be authorised to conduct business under the Investment Promotion Act of 1992. Licensed insurers, reinsurers, agents, brokers and loss adjusters must be authorised to operate in the country, and must renew their accreditation annually.