Insurance leaders confront challenges of underinsurance and fraud

As Jamaica’s insurance sector faces persistent gaps in coverage and rising fraud risks, industry leaders call for a stronger, more inclusive, and accountable sector to support national resilience, following critical discussions at the Insurance Association of Jamaica (IAJ) 2026 Business Conference.

Held under the theme “Charting the Future Together – Strengthening the Insurance Ecosystem”, the two-day conference, which ran from April 20 to 21, brought together industry leaders and stakeholders in the financial services sector to examine the sector’s role in national resilience and economic stability.

In his opening keynote address, Matthew Samuda, Minister of Water, Environment and Climate Change, highlighted important policy reforms to address increased climate risks and stressed the urgent need to strengthen Jamaica’s climate resilience, advance sustainable development, and build stronger partnerships to safeguard the Jamaican people and the economy.

Rosemarie Henry, president, Insurance Association of Jamaica (IAJ), underscored the urgency to address challenges related to resilience, underinsurance, and fraud. “Underinsurance remains a major challenge. Fraud and emerging risks continue to evolve, and these issues limit how quickly Jamaica can recover from shocks,” she said.

The interplay of underinsurance and climate risks came into sharp focus during a panel discussion examining the aftermath of Hurricane Melissa. Peter Levy, managing director, BCIC, said: “Melissa tested our entire industry, and while the sector held firm financially, the experience revealed important gaps in how quickly and effectively we were able to serve our customers when they needed us most. The real lessons lie there, in the speed of claims processing, in having enough trained adjusters and assessors on the ground when it matters, and in how we communicate throughout the process.”

Hugh Reid, general manager, JN Life Insurance Company, warned that low insurance penetration continues to weaken national resilience. “We dodged a bullet. If Hurricane Melissa had hit differently, the impact would have been far worse,” he said, calling for, among other things, stronger incentives for insurance-related savings products to encourage greater public uptake of insurance.

Panelists agreed that true resilience starts long before a disaster strikes; through broader access to insurance coverage and pension products, which, often unknown to many, can be used flexibly to provide a critical financial lifeline in times of crisis, stronger public awareness of what insurance actually provides, and a more enabling policy and regulatory environment to support both.

Fraud emerged as another urgent issue, with industry leaders warning that it is becoming more sophisticated and more costly.

Tamara Glaves Hucey, head of general insurance, GK Financial Group, pointed to a rise in inflated claims following disasters. “Persons are claiming damages that did not occur or seeking to upgrade losses. It may seem minor, but it has a real impact,” she said.

Panelists agreed that fraud ultimately drives up premiums and erodes trust, reinforcing the need for stronger collaboration and data sharing, targeted legislative changes, better use of technology, and sustained public education.