Wednesday, September 25, 2013

The Insurance Industry In Barbados

The importance of availing insurance for properties, motors and commercial establishments  cannot be undermined, a recent study has revealed that the number of  properties insured in Barbados is inadequate.

Based on assessments of the home insurance market, the level of insurance among homeowners has simply not been at a level that is considered to be ideal.The general attitude of people towards availing property insurance  is a big turn off and has subsequently proved to be a disappointment as  far as the penetration of insurance companies is concerned.

The Big Picture

The insurance industry  in Barbados is well established. However, during the review period between 2008 and 2012, it went through a challenging time where it's mettle was tested.  There were difficulties between  the government  and a certain financial Group along with its subsidiaries. Moreover, issues got compounded due to  the domestic and global economic downturn. However, today Barbados has established itself as a strong domicile conducive for  conducting international insurance business . Besides, it  is ranked among the seven-leading captive domiciles in the world.

Actions Taken

An in- depth market analysis,  procurement of detailed  information and  revealing insights into the insurance industry in Barbados have been conducted in the following lights.
  •  The Barbados insurance industry's growth prospects have been studied in terms of  insurance segments and categories.
  •  The competitive landscape in the Barbados insurance industry has been mapped.
  •  The current trends and drivers of the Barbados insurance industry have been determined.
  •  The challenges facing the Barbados insurance industry have been identified.
  •  Based on the reports received from above, consequent  actions have been taken by  the regulatory framework of the Barbados insurance industry .
The Purposes which the Analysis of the Insurance Industry Serves.

The comprehensive analysis of the insurance industry in Barbados results in :
  •  obtaining historical values for the Barbados insurance industry for the 4 years ( 2008–2012) review period and based on which forecast figures for the 2012–2017 forecast period are arrived at.
  •  the study has provided detailed analysis of the key segments and categories in the Barbados insurance industry, along with industry forecasts until 2017
  •  the study  covers an exhaustive list of parameters, including written premium, incurred loss, loss ratio, commissions and expenses, combined ratio, total assets, total investment income and retentions.
  •  the study has been able to zero in on the  profiles of  the top insurance companies in Barbados and has accordingly outlined the key regulations affecting them.
Why should one Buy Insurance?

Obtaining property insurance ( home or commercial ) enables the following :
  •  Provides financial coverage, security and safety.
  •  Knowing the financial worth of the property in the market through  valuations .Possible to make strategic business decisions using in depth historic and forecast industry data related to the Barbados insurance industry and each segment within it
  •  Given the stiff competition and the competitive dynamics in the Barbados insurance industry, the top players can only put do each other by providing better service. In the end, the customer is the gainer.
Conclusion:
  • The insurance industry in Barbados is highly competitive and companies . However, they were compelled to maintain low premiums during the review period (2008-2012)
  •  Low premiums are largely attributed to the nation's weak economic situation . Consequently, unemployment increased and policyholders had a tough time as they struggled to make payments
  •  Subsequently  there has been a rise in the cancellation of policies and the profitability of operational companies during 2009-2011
  •  Besides, unstable international economic conditions, combined with generally lower domestic and global interest rates, have also led to those companies (with significant worldwide investments) to record reductions in their earnings from those assets ,
Due to the above reasons, the  penetration of the insurance companies have been inadequate. Perhaps, the Barbadians need to learn from their Trinidadian neighbors who don't make joke in insuring their property because they know that  to find that money to rebuild a home is not easy.

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