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Bests Special Report: Caribbean Insurance Regulators Show Solid Performance, Although Future Remains Uncertain

A.M. Best’s annual survey of the Caribbean Association of
Insurance Regulators (CAIR) member countries found that the region’s
performance in 2016 was solid with insurers posting an after-tax income
of USD 553 million, although that represented a 20% decline from the
previous year.

The Best’s Special Report, titled, “CAIR 2018: Forecast is
Cloudy, But With a Chance of Profits,” states that while total net
losses, loss adjustment expenses and underwriting expenses were up for
the region, the industry remained profitable.

Survey highlights include the following:

The CAIR member countries surveyed covers 330 active licensed companies
writing business in the region, an increase of 16 active companies
surveyed in the previous year’s data collection. As the countries in the
region are widely diverse with varying reporting requirements,
accounting standards and regulatory requirements, the results vary from
country to country on some levels.

The economic damages from the 2017 hurricanes have been estimated in the
tens of billions of dollars, and impacted many of the territories
surveyed. Insurance penetration has historically been relatively low in
some of the affected areas, leading to a wide disparity between economic
and insured losses, which should be captured in next year’s survey
results. Gross domestic product growth in 2018 and 2019 is expected to
be positive, but it likely will diverge among the member countries,
depending on rebuilding efforts in the aftermath of the hurricanes, as
well as regional tourism arrivals and the strength of the commodity
cycle.

To access the full copy of this special report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=274759.

A.M. Best is the world’s oldest and most authoritative insurance
rating and information source. For more information, visit www.ambest.com.

Copyright © 2018 by A.M. Best Rating Services, Inc. and/or its
affiliates. ALL RIGHTS RESERVED.

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