27 May 2003

Fiji businesses asked to consider political risk insurance

10:28 am on 27 May 2003

Businesses in Fiji have been urged to consider taking out political risk insurance to counter the adverse effects of coups and resulting trade bans.

The Fiji Sun reports that he calls has come from the chairman of the Licensed Insurance Brokers Association, Paul Dunk.

Mr Dunk says if the risk of losses to business cannot be eliminated or reduced to an acceptable level, then it can legally be transferred to other parties.

He says unless businesses consider risk protection now and how losses can be eliminated or reduced, they could suffer severe financial stresses.

Mr Dunk says studies in Australia have shown that companies which protect their assets only and not the financial consequences, either do not recommence business or fail within three years.