The bank now becomes the fourth active licenced insurance company in the country.
The entry of BSP into the insurance industry is seen as a positive step to develop and grow the sector.
BSP CEO Robin Fleming was presented the Life Insurance License by Deputy Governor, Gae Kauzi, in Port Moresby, formally recognising BSP Life Limited (BSPL).
Kauzi congratulated BSPL saying the licences are not easy to come by.
He also challenged BSPL to instil strong governance and best practices, which have been lacking in the past in some insurance companies.
“There is a need to apply the best risk and financial management practices. This challenge goes to the entire insurance industry and to all financial institutions in the financial services sector,” he said.
Fleming agreed and said the interest of policy holders was important.
“A very strong corporate governance requirement to ensure that interest of policy holders is protected at all times.”
He said BSPL and its products were for the benefit of ordinary Papua New Guineans.
BSPL offers mortgage consumer credit insurance, group term life and an endowment product.
The consumer credit insurance feature will benefit clients with BSP personal loans products, with no added costs to customers.
BSP will take out consumer credit insurance with BSPL to pay outstanding loan balance up to a maximum of K50,000 and a funeral assistance benefit of K5,000.
(BSP CEO Robin Fleming)