Make insurance more affordable says SG

Secretary-General of the Caribbean Community (CARICOM) Ambassador Irwin LaRocque has called for the cost of insurance to be more affordable.

Ambassador LaRocque was speaking on Tuesday on a panel at the Insurance Colloquium: Insurance in the age of climate change organised by the Inter-American development Bank (IDB), the Caribbean Development Bank (CDB) and the Government of Barbados and held at the Lloyd Erskine Sandiford Centre in Barbados.

The Secretary-General stated that governments in the Region lacked the fiscal space to afford the insurance required to provide adequate financial resilience given the increase in in intensity and frequency of natural disasters due to climate change. He pointed out that in our Region, there was a 66 per cent protection gap between the economic costs of damages and insured losses as against 55 per cent in developed countries.

He stated that it was the most vulnerable in the society who were most affected and who had the least capacity to afford the insurance which increased the responsibility of governments to provide the necessary relief.

“This at a time when insurance premiums keep rising,” he added.

Speaking on the Challenge of Climate Change, the Secretary-General said the real need for the Region was to address its vulnerability prior to a disaster. He pointed out that each dollar spent on resilience saved between four and seven dollars of reconstruction and rebuilding costs after a disaster. He reiterated his call for using vulnerability as the criterion in determining concessional development financing instead of GDP per capita.

Source: CARICOM TODAY