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Global insurance costs to surge, TCI firms still in payout mode

TCI Police hurricane irma

Providenciales, Turks and Caicos – December 5, 2017 – Expect insurance costs to go up for the Turks and Caicos, though the industry leaders in the islands are not yet saying so.

JP Morgan in October reported that the natural disasters which hit in the final half of 2017 are likely to cost over $100 billion, and this will mean an increase in insurance rates for everyone.

Some in the industry are looking forward to the increase though as it was explained that current insurance rates were below pre-911 figures.

In the Bahamas it is estimated that due to the catastrophes, which include hurricanes Harvey, Irma and Maria and the earthquakes in Mexico – the spike could be 15 to 20%.  In a Tribune newspaper report, Tom Duff, General Manager of the Insurance Company of The Bahamas said while it is still early negotiating season, there are conversations being had and customers need to prepare for the hike.

“I wouldn’t like to put particular figures on it as it’s still early in the negotiation process, but the reality is that as the cost of catastrophe cover is typically increased, we have to pass it on to the customers as that’s a major expense that has to be covered.”

The increase, when it comes will apply to Bahamian businesses and households and Timothy Ingraham, Summit Insurance Company president, also told Tribune Business that in two weeks there would be more specifics.

POLICE PHOTO OF PROVIDENCIALES HEADQUARTERS

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