 | |
| The 'Caribbean Insurance Report 2008' released by the Irish-based Research and Markets, which profiled Jamaica, Barbados, the Bahamas, Trinidad and Tobago and the Dominican Republic, said "there is much that is encouraging" in the region's insurance industry. (File photo) | |
DUBLIN, Ireland, May 15, 2008 - A new report on the Caribbean insurance industry has given a passing grade to the sector, pointing to high standards of regulation.
The 'Caribbean Insurance Report 2008' released by the Irish-based Research and Markets, which profiled Jamaica, Barbados, the Bahamas, Trinidad and Tobago and the Dominican Republic, said "there is much that is encouraging" in the region's insurance industry.
"Relative to medium-income developing countries in other parts of the world, it is clear that the general standards of regulation are high and, with some qualifications, the levels of country-specific risk low," it said.
"Leading multi-national insurers have, for the most part, regarded the Caribbean as a region that they can afford to ignore. However, three groups - Guardian Holdings, CLICO/Colfire and Sagicor - have filled the gap by building businesses across the region."
It added that the entire region also has other advantages including its proximity to and/or currency linkages with the United States (US), typically lower costs for business than the US and the ability to speak the languages that matter for the US - that is, English and Spanish.
The report, which provides forecasts and intelligence on the Caribbean industry, noted that while the entire insurance sector in Jamaica and the Dominican Republic is underdeveloped, and (especially in the Dominican Republic) people are reluctant or unable to save for the future through life insurance, Barbados on the other extreme "has already developed as a substantial centre for offshore captive insurance, although life insurance is not especially popular".
It however noted that Barbados may face competition from the Bahamas "which is already one of the world's most important offshore banking, private banking and trust centres (with over US$350 billion in banking assets at the end of 2006) and where the authorities are keen to promote offshore insurance".
The report said that in Trinidad and Tobago which has a booming energy sector and is home to the largest economy in the British West Indies, life insurance density (i.e. premiums per capita) is high but non-life penetration (i.e. premiums as a percentage of Gross Domestic Product) is low.
|
