Cedric E. Stephens | Seeing Jamaica’s centenary in 2062

The actors in the island’s 2026-27 Budget Debate performed poorly. Even though they made many references to the socio-economic and other impacts of hurricanes Beryl and Melissa, the performance of the nation’s financial shock absorbers, i.e., the insurance companies and the entities that regulate them, were not examined. Did these organisations realise their missions when they were put to the test last year and the one before? Did they underperform, and, if so, why? Were important lessons learnt, or will it be business as usual in the future? What are their plans to improve efficiency and effectiveness?

Answers to these and other questions are matters that should be of public interest. The combined effects of the record-breaking 2024 and 2025 hurricanes led to a decline in gross domestic product of nearly 60 per cent. The risks have not abated. Climate-change threats mean similar occurrences are likely.

The risk-bearing industry and its regulator were silent after the storms. Last year’s caused damage estimated at US$12.2 billion. The silence continues even now as the 2026 hurricane season approaches. This is surprising in the wake of other untoward events like COVID 19 and the SSL fiasco. Calls for good governance, transparency and an upsurge in interactions on social media seem hollow against this background. The absence of engagement with prospective and existing policyholders in explaining the relevance and importance of the risk-transfer industry in fostering national resilience is a lost opportunity.

This newspaper recently reported that “as Jamaica sharpens its approach to post-disaster recovery, Peru has emerged as a key model, offering lessons in resilient reconstruction, institutional design and faster infrastructure delivery.” Developments in India should also be studied in assessing and modelling the performance of our financial shock absorbers post-Melissa. That country offers an example of an activist insurance regulator and a progressive industry that recognise their importance and role in promoting resilience and fostering development.

India has embarked on a journey towards becoming a global economic powerhouse. Ambitious goals and transformative visions provide evidence of its ambitions. By 2047, India envisions itself as a fully developed nation, celebrating 100 years of independence. Its insurance industry is seen as a vital pillar of economic stability and growth and is projected to play a crucial role in realising that vision.

India’s Vision 2047 aims for inclusive growth, technological advancement, and enhanced resilience against economic and environmental challenges. Its insurance industry is at the forefront of its journey and is tasked with safeguarding assets, lives and businesses, while fostering innovation and financial inclusion.

The subcontinent’s ‘Insurance for All by 2047’ concept is driven by the regulator, the Insurance Regulatory and Development Authority of India (IRDAI). The idea is not just about sectoral reform, but is being framed as part of a broader financial inclusion and development strategy tied to the country’s centenary of independence.

CORE IDEAS BEHIND THE 2047 CONCEPT

At its simplest, the vision aims to ensure:

• Universal risk protection: every citizen has life, health and property insurance.

• Enterprise resilience: all businesses are insured against operational risks.

• System wide inclusion: insurance becomes as ubiquitous as banking or digital payments.

KEY PILLARS SUPPORTING THE CONCEPT

1. Closing the protection gap

o India has a very large underinsurance problem; for example, there is an 83 per cent life insurance protection gap.

o Insurance is seen as correcting a market failure, where risks are borne privately but inefficiently.

2. Insurance is perceived as a public good (quasi-social protection)

o The framing increasingly treats insurance as a basic financial service, not a luxury.

o The aim is to reduce vulnerability to shocks (health, climate and mortality).

3.Financial inclusion 2.0

o Builds on earlier successes, like bank account expansion and digital payments.

o Targets last-mile access (rural, informal sector).

4. Digital public infrastructure for insurance

o Platforms like Bima Sugam (a one-stop, end-to-end digital insurance platform for all insurance needs launched by IRDAI).

o Artificial Intelligence (AI)-driven underwriting and claims processing.

o Expansion of ‘Bima Vahaks’ (local distribution agents).

5.Market deepening and liberalisation

o Easier entry for insurers, more capital, regulatory flexibility.

o Goal: raise insurance penetration to.0 8 per cent of GDP.

6. Tripartite ecosystem design comprising:

a) Policyholders (demand);

b) Insurers (supply); and

c) Intermediaries (distribution).

THE INDIAN GOVERNMENT’S RESPONSE

Research found that the government supports the initiative for the following reasons:

1. Macroeconomic stability: insurance reduces fiscal pressure after disasters. It is projected that there will be less need for ex-post bailouts or budgetary reallocations.

2. Poverty reduction: health shocks are a major cause of household indebtedness; insurance mitigates this.

3. Productivity and growth: firms invest more when risks are hedged, and labour productivity improves with health coverage.

4. Political economy: insurance expansion is a visible welfare-enhancing reform without full fiscal burden, because costs are shared with the private sector.

5. Capital market development: insurance mobilises long-term savings, some of which can be deployed in infrastructure financing.

There is evidence that the concept is being translated into action. The initiative is aligned with the government of India’s Viksit Bharat 2047 (or Developed India) Agenda. Second, it is being implemented through:

1. Reforms orchestrated by the insurance regulator, IRDAI.

2. Industry wide co operation.

3. More importantly, the introduction of pilot programmes in several “fully insured” districts.

Assets held by insurance and reinsurance entities domiciled in two of Jamaica’s smaller neighbours in the Caribbean and Atlantic — the Cayman Islands and Bermuda — amounted to over US$500 billion last year. Given the nature of the catastrophic risks to which this island and its people are exposed, the risk-transfer industry should be as much a part of our collective DNA as track and field, reggae music, rum, and other aspects of local culture especially now, given the threats of climate change.

India’s Insurance for All by 2047 vision reflects a paradigm shift: from insurance being perceived as a market product to insurance being viewed as a development instrument and part of that country’s resilience infrastructure. For countries like Jamaica, the key takeaway is not necessarily universal insurance coverage for all by 2062, but the integration of insurance into national development, climate resilience and its financial inclusion policy. As I suggested in this space a few weeks ago, the Twin Peaks regulatory framework pre- and post-hurricanes Beryl and Melissa are not the answer to the complexities the island faces as we envision the centenary of Jamaica’s Independence, 36 years from now.

Cedric E. Stephens offers free counsel and advice if you require assistance managing risks or solving insurance problems. To obtain information and counsel, please write to The Business Editor at business@gleanerjm.com or contact Mr Stephens directly at aegisja@gmail.com. Letters and e mails will be edited for clarity and length.