Although it has still early days since Hurricane Beryl passed, updates from major insurance companies indicate that claims numbers were trending steadily upward on Friday as customers sought payments for property damage caused by wind and flooding.
Phone lines at insurers GK Insurance, British Caribbean Insurance Company (BCIC) and Iron Rock were relatively busy on Thursday and Friday, with at least one reporting that it had already received up to 20 claims related to the Category 4 hurricane, which has killed at least three people, downed power lines and downed trees.
The western end of the island was the hardest hit.
“We have had 20 claims today alone,” K. Michelle Reid, claims and legal manager at GK Insurance, told the Jamaica Observer.
Meanwhile, Iron Rock director Evan Thwaites said that while no claims had been made by Thursday night, the company was aware of four hurricane-related incidents.
“We are aware that one insured home in Treasure Beach has lost its roof. We have a team of adjusters heading out to St Elizabeth tomorrow (Friday) and will be assessing the damage over the weekend. In other words, we are not waiting for people to make a claim, we are sending staff out to understand the extent of the damage and how we can help,” he told Sunday Finance.
In terms of car accident claims, Thwaites said there have been a few calls about windshield damage caused by falling tree branches.
“This is quite common. Cars parked near ackee or mango trees often get damaged as branches fall and shatter windscreens or damage the car. At the moment we are aware of three motor vehicle accident claims but we are sure there will be a few more in the future,” he added. However, Twaites does not expect a flood of claims at this time.
Insurers expect to have a more accurate figure on how much they will have to pay out in claims by Friday, when some normality returns to business and proper property inspections are carried out.
Just days before Hurricane Beryl passed, residents scrambled to take out or renew insurance policies in anticipation of “catastrophic” weather conditions.
Property and auto insurance was the most in demand, driven by growing fears about Beryl, which was expected to bring hurricane-force winds, life-threatening storm surge and destructive waves to Jamaica after making landfall on the Grenadian island of Carriacou.
Hurricane Beryl pounded the southern Caribbean islands on Monday, destroying hundreds of buildings and killing at least seven people, while Jamaica was spared from the storm, which destroyed many homes and businesses.
Still, news of a hurricane typically forces many people to prepare for any eventuality.
“Whenever a storm hits, we usually see an increase in interest in insurance. We certainly had a few people whose insurance had lapsed and contacted us to reinstate their insurance, but in the case of Hurricane Beryl, we think the notice was so late that people only had one business day to get the coverage they needed,” said Sgt.
“When the country issued a hurricane watch and the storm was due to arrive within 48 hours, many insurers stopped writing new business,” Peter Levy, managing director of British Caribbean Insurance Company (BCIC), told Sunday Finance.
While much of BCIC’s property insurance business comes from mortgage lenders, the company is also looking to grow from private property owners. Natural disasters like Hurricane Beryl are one way to spur growth, but Levy is also hoping for an increase in advertising.
“Some homeowners have paid off their mortgages and taken out personal insurance and we’d like to attract more of those customers, but the majority of our property insurance business comes from building societies and lending institutions,” Mr Levy said.
Sunday Finance.
Iron Rock is also hoping to strengthen its position in this market as industry rates become more stable in 2024 after auto and home insurance rates soared in 2023. Rising interest rates are the main driver of premium increases, with investors finding insurance less attractive than before.
As a result, motor insurance will increase by an average of 25% in 2023 compared to last year, while the average premium for combined buildings and contents insurance will increase by 19% compared to last year.
“This year has been relatively calm. The reinsurance market has recovered a bit. There were relatively few catastrophe events globally last year, which has allowed capital to build up. Prices have not fallen but are stable or slightly up,” Levy said.
Property insurance rates typically range from 1 percent to 25 percent of the value of the property or vehicle.
