Prime Minister Roosevelt Skerrit says Insurance companies need to play a greater role in the recovery post natural disasters
Prime Minister Roosevelt Skerrit says Insurance companies need to play a more pivotal role in a country’s recovery process post natural disasters.
The Prime Minister made the remarks this morning at the 43rd Annual General Meeting of the Insurance Council of St. Lucia, held under the theme, “CATASTROPHIC EVENTS – THE NEW REALITY OR CYCLICAL.
In his address the Prime Minister said that in our quest to be better prepared to minimize the impact of climatic events, we also have no choice but to consider the role of insurance.
He says, there are serious challenges to be surmounted if insurance is to play a more pivotal role in the recovery process.
He also called on the Insurance Council for St Lucia, to be part of the solution.
Mr Skerrit told the gathering that Insurance makes good sense when the insurable event is random and rare, and risks can be spread across time and other uncorrelated risks, but asked what happens when the frequency, correlations, and loss increase simultaneously?
He also asked what happens when the premium becomes non affordable, or the capital base of insurers becomes depleted?
The Prime Minister said that radical solutions are required; new instruments; new premium models.
He said the region must all work together to overcome these challenges.
The Prime Minister said that the experience in Dominica after hurricane Maria was that insurance assessors found many to be under insured. Policyholders were insured for only a limited number of hazards. Many were not aware that they would not receive the full amount for what they had been assessed.
Since the 2017 Hurricane season insurance premiums have skyrocketed.
Mr Skerrit says the insurance Council should consider all of these issues and make recommendations on new models and new products that are more responsive to the needs of the clients.
He says the Insurance Sector will not survive, if clients do not purchase the products. If products are not purchased then the people of the Caribbean are not covered.