as a whole held deposits in the banking system totalling $ 224. 4 million as at 31 december 2018, supporting the banks ’ ability to provide loans for consumption and investment purposes. honourable members, in addition to our core financial stability work, the development mandate of the bank calls for extended efforts on inclusive insurance initiatives. we wish to briefly provide an update on the work undertaken by the bank in this space, in 2018 : bundled insurance product : following the successful launch of the fiji care micro insurance bundled product in 2017 to 11, 606 cane farmers, the cover was extended in early 2018 to dairy farmers ( 258 ), copra farmers and rice farmers ( 63 ) with premiums as low as $ 52 per annum or $ 1 a week. the product was further extended to civil servants ( 37, 000 ) and social welfare recipients ( 71655 ) which brings the total number of bundled insurance holders to 120, 671. at the end of 2019, the number further increased to just over 135, 000. during the year, a total of 837 insurance claims valued at $ 1. 4 million was paid out. this increased significantly in 2019 with approximately 3, 800 claims paid out totalling $ 6. 5 million. the bundled product has significantly increased the take - up of insurance in fiji specifically from those who have never owned insurance, and has also assisted in the creation of awareness on the benefits of having insurance with our grassroots people. the reserve bank has a vested interest in such a trend for another reason, as the increased uptake allows fiji to remain on track to achieve its “ percentage of adults with insurance product ” national financial inclusion core indicator target of 25 percent, by 2020. agriculture insurance : the rbf sought to assist in the reactivation of the agriculture insurance national working committee, to engage with relevant stakeholders on exploring opportunities to introduce agriculture insurance in fiji and better adapt to climate change and disaster risks. we understand that the ministry of agriculture continues to lead the dialogue on this issue, and we stand ready to assist if required. consumer protection : with regard to consumer protection, the reserve bank received 48 insurance related complaints in 2018 comprising 0. 8 percent of the outstanding claims reported for the year. most of the complaints were in the area of customer services, and 39 of these complaints were settled during the year with one withdrawn. i can also report that the eight ( 8 ) pending complaints reported in 2018 have now all been settled. we continue to work together with the industry to ensure that

. we will continue to discuss with the industry on the design of insurance products and insurance arrangements that will specifically meet the growing needs of our people. the insurance act 1998, now more than 20 years old, is undergoing a review with the technical assistance of the imf, with the aim of modernising the legislation to incorporate recent industry developments and supervisory practices. these developments include exploring the fronting arrangements, the possibility of allowing captive insurance frameworks, and further clarity around the legal provisions for inclusive insurance. honourable members, we continue to see the effect of natural disasters locally and globally, evidenced by the vivid images of devastation caused by the current australian bushfires, the recent earthquake in puerto rico that is claimed to have changed the landscape of the country, and for us, the expectation that fiji may be in the path of a number of tropical cyclones in the remainder of the current cyclone season. the magnitude of economic and social losses caused by these natural disasters reiterates the importance of not only having adequate insurance coverage in place but also enhancing insurance affordability. there is indeed an ongoing need for the industry to not only promote insurance awareness to the general public, but to also develop and offer innovative insurance solutions that meet the needs and affordability of all fijians. the reserve bank is committed to continue work on the necessary initiatives to achieve such outcomes. honourable chair and members, thank you again for this opportunity to discuss the 2018 report with you, and we welcome any questions that you may have. reserve bank of fiji 16 january 2020