Innovative financial technology is the best way to increase insurance and pension coverage in Papua New Guinea and bring vital services to the financially excluded, says the country’s central bank Governor, Elizabeth Genia.

Speaking at a major national roundtable of key government and private sector stakeholders, the head of the Bank of PNG (BPNG) urged those in the room to tailor financial solutions in a way that helps PNG adapt to new and emerging technologies.

The roundtable was co-hosted by the UN Capital Development Fund (UNCDF), Pinbox Solutions, the Association of Superannuation Funds of PNG (ASFPNG) and Kina Bank to identify strategies to expand insurance and pension coverage that will help strengthen the resilience of the country’s non-salaried workers

“Financial inclusion is one of the highest priorities for our citizens and is fundamental to improving our economy and the livelihoods of those living in remote areas,” Ms Genia said.

“We know that economic growth is not possible without a broad and inclusive business enabling environment that includes access to useful financial products and services for all citizens.”

Nearly 85% of PNG’s non-salaried informal sector workforce, including small holder farmers, farm labourers, women micro entrepreneurs, domestic helpers, and casual workers in the MSME sector, are excluded from formal pension and insurance coverage, exposing them to long-term financial risks.

According to Executive Secretary, Pradeep Kurukulasuriya, UNCDF is uniquely positioned to support the BPNG and the private sector with expanding insurance and pension coverage and with developing digital solutions that suit the needs of the country’s people.

“Increased pension and insurance coverage directly correlates with improved resilience against financial shocks, better quality of lives and stronger development outcomes and we are proud to support this roundtable discussion on the subject,” Mr Kurukulasuriya said.

“UNCDF’s unique capability in the UN system to deploy grants, loans and guarantees, or an appropriate combination of instruments to crowd in additional forms of capital allows us to support the development of innovative digital finance solutions. Collaborating with like-minded partners in PNG, we will scale these solutions, ensuring that the informal sector is not left behind.”

Pinbox solutions, a Singapore consulting firm and service provider, and the ASFPNG provided technical support for the stakeholder dialogue. Pinbox will also present digital micro-pension and insurance models that will aim to make savings and insurance simple and affordable for the millions of PNG’s excluded workers.

This follows a recommendation from a 2019 UNCDF-led study conducted by the Pacific Financial Inclusion Programme which found that digital micro-pension and insurance inclusion have strong potential in PNG, given the mature digital finance ecosystem in the country established by BPNG.

“ASFPNG has always championed the cause of universal superannuation and insurance coverage for all. This roundtable provides a unique and timely opportunity for all stakeholders to come together and develop a comprehensive framework for micro-pension and insurance inclusion,” said Vera Raga, Executive Officer of the Association of Superannuation Funds in PNG.

“A major challenge remains in ensuring the sustainability of voluntary contributions for superannuation and insurance premiums. It is crucial to foster a strong sense of self-awareness among contributors to encourage consistent and long-term participation.”

A diverse set of stakeholders attended the roundtable, including policymakers, regulators, insurers, Mobile Network Operators (MNOs), digital payments solution providers, donors, development agencies, think-tanks, thought leaders, economists, and more.

The discussion focused on social and fiscal policy imperatives for comprehensive pension and inclusive insurance inclusion, collaborative action through ecosystem building and stakeholder engagement and leveraging cutting edge technology.

About UNCDF
The UN Capital Development Fund assists developing countries in the development of their economies by supplementing existing sources of capital assistance by means of grants, loans and guarantees, first and foremost for the least developed among the developing countries.

As a Flagship Catalytic Blended Financing platform of the UN, UNCDF utilizes its unique capability to crowd-in finance for the scaling of development impact where the needs are greatest—a capability rooted in UNCDF’s unique investment mandate—to support the achievement of the 2030 Agenda for Sustainable Development and the realization of the Doha Programme of Action for the least developed countries, 2022–2031.