Insurance rate hike possible?

GENERAL insurance policyholders who have been benefiting from reduced costs could very well see a hike in premiums following the passage of two recent hurricanes.
While not stating this exactly, an insurance executive of CGM Gallagher Insurance Brokers (Barbados) Limited has said policyholders will be in for a reality check in the wake of the two weather systems.

Highlighting these likely developments was Scott Stollmeyer, the new Managing Director for CGM Gallager Insurance Brokers (Barbados) Limited and the Eastern Caribbean.
He addressed company officials and other stakeholders at a function held to welcome him to the new position. It took place at the Apes Hill Club, St. James on Wednesday night. Stollmeyer highlighted hurricanes Irma and Maria which caused death and destruction in some Caribbean islands including Dominica which felt the full fury of Maria.

He told the reception that many people in Barbados would have experienced reduced general insurance costs on their home and business portfolios over the last six to eight years.

According to him, those rates would have fallen steadily as a result of increased competition in the industry, and the lack of game changing events both in Barbados and the region as a whole.

“However, with the passage of Hurricanes Irma and Maria in September, and the expansive devastation and destruction brought to our neighbouring brothers and sisters, I fear that you all are in for a reality check,” Stollmeyer cautioned.

“Our commitment to you of course is to work together to forge the best path forward,” he assured.

In relation to the hurricanes, the new CGM Gallagher Managing Director made special mention of the company’s claims department and in particular, two of its officers who travelled to Dominica less than two weeks after the passage of Maria. That was done, Stollmeyer said, to assess the needs of clients there, the well-being of staff
and to assist the people of Dominica in their time of needs.

He said that the insurance industry is very vibrant with over 20 companies actively writing insurance business in Barbados and over 20 insurance brokers
competing for the same market share.

“I stand before you this evening to reinforce my commitment. The CGM Gallagher will stand strong and work with you,” Stollmeyer promised. (JB)