Global re-insurers which provided backing for local insurance companies, appear to be more open to doing business with the region compared with 2022.
President of the Insurance Association of Jamaica Sharon Donaldson says the increases experienced in the cost of insurance have brought prices to a level with which these re-insurers are satisfied.
“I think we’ve gone through the pain in 2023 where the prices went up as much as 60-70%. I think the pricing levels for home are probably at the right levels now and I think the reinsurers are pretty comfortable with where they are and they would expect minimal increases going forward,” she said.
Last year, some re-insurers threatened to leave the region, and some reduced backing as they deemed the cost being paid locally to be low, compared with other markets.
Ms. Donaldson said re-insurers appear to be more open to staying in the region, but increased capacity may be a long shot.
“I am not so sure. I think it’s a little too soon to tell because we’ve not yet had that renewal conversation with the reinsurers. I’m not so sure if additional capacity will come in. I am more inclined to say that the capacity will not go.”
Due to the lower available capacity, some people have found it difficult to secure property insurance, and the premiums secured tend to be comparatively expensive.