Monday, Jul 16, 2018

Higher insurance costs

Higher insurance costs
12 Dec
2017

Barbadians will be paying more for insurance from next year,

The General Insurance Association of Barbados gave the warning in a notice in the local press Sunday.

The Association says the hike is as a result of the impact of hurricanes Harvey, Maria and Irma and the earthquakes in Mexico.

Those natural disasters have had a devastating impact on the global reinsurance market which supports the local insurance industry.

Losses have been calculated at one hundred billion US dollars.

The GIAB is therefore anticipating that from January 1st 2018, its member companies will have to pay slightly higher reinsurance costs in order to secure adequate protection under their property reinsurance programmes.

This will result in premium increases for policyholders.

Barbadians will also be paying more for motor insurance. The GIAB says its member companies have been charging motor insurance rates at subsidized margins despite escalating costs from the National Social Responsibility Levy, VAT, and tax on assets.

The Association says it can no longer afford to absorb the cost.

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