Caribbean

Jamaican insurers warn of 20% increase in rates for 2005

The damage inflicted in the Caribbean during this year s hurricane season could see property insurance rates climb in Jamaica, according to Andrew Levy, chairman of the Jamaica Association of General Insurance. Mr Levy noted that rates in the Caribbean spiked after hurricane Andrew in 1992. United General Insurance (UGI) claims manager noted that Jamaica is not isolated from the Caribbean and the US and reinsurers were badly hit this year. Reinsurance costs will go up and that will trickle down to the end-consumer. Globe Insurance general manager of operations Michael Gayle predicted that rates would rise by about 20%, although it may be a little less than anticipated . Mr Levy said that Jamaicans had got off lightly compared with residents of the Cayman Islands, where rates had increased from 0.8% to 1.5% of a property s value, equal to a 90% hike.