Insurers pay $54b in Melissa claims, 983 outstanding

Insurers have paid out $54.35 billion in property and motor insurance claims arising from Hurricane Melissa, with 983 of 9,340 claims remaining outstanding as at September 30, according to new figures released by the Insurance Association of Jamaica (IAJ).

The data show that 8,357 claims have been settled, representing an overall settlement rate of 89.5 per cent across the specified categories.

The latest figures come amid mounting public concerns about delays in insurance settlements, particularly among commercial and tourism-sector policyholders, and questions about deductibles, property valuations and underinsurance.

IAJ President Rosemarie Henry said the association was providing more detailed information to improve transparency and allow Jamaicans to assess the industry’s response to the hurricane, which caused extensive damage across the island.

“Jamaicans have been asking important questions about the insurance industry’s response to Hurricane Melissa, and those questions deserve clear, factual answers,” Henry said.

She said the $54.35 billion in payments reflected insurers’ significant financial contribution to the country’s recovery but acknowledged that outstanding claims remained a concern.

“We cannot ask the public to have confidence in the insurance industry without being prepared to demonstrate how we are responding,” she said, adding that the association intended to continue providing updates.

Of the total payments, $51.98 billion went towards property insurance claims, while motor insurance payments amounted to $2.37 billion.

Commercial property claims accounted for $41.61 billion, or 80 per cent of property payouts, while residential property claims accounted for the remaining $10.37 billion.

St James, one of the parishes hardest hit by the hurricane, recorded the largest share of property payments, at $30.55 billion, representing 58.8 per cent of the total. Hanover received $3.52 billion, Westmoreland $2.94 billion and St Ann $1.75 billion. Another $9.33 billion was attributed to islandwide and multi-location policies.

Together, St James, Hanover and Westmoreland accounted for approximately 71.2 per cent of recorded property payments.

low insurance payouts

The association noted, however, that St Elizabeth, despite suffering extensive damage, recorded relatively low insurance payouts because of limited insurance penetration in the parish. It said this highlighted the vulnerability of property owners without adequate coverage.

Motor insurance claims recorded the highest settlement rate, at 96.5 per cent, followed by residential property claims at 85.7 per cent and commercial property claims at 83.1 per cent. Engineering claims lagged, with 55.2 per cent settled.

Commercial and residential property claims accounted for 740 of the 983 outstanding claims, or approximately 75 per cent of the remaining workload.

Tammara Glaves-Hucey, IAJ vice-president for general insurance, said the figures would help insurers focus on unresolved assessments, reinstatement work, documentation and claims requiring further review.

She acknowledged that policyholders had experienced different timelines and said insurers were working with loss adjusters and customers to resolve outstanding matters fairly and as quickly as possible.

The association also recognised concerns about deductibles, valuations, underinsurance and the application of the average clause, which can reduce payouts where a property is insured for less than its value or the required level of cover.

Where claims cannot yet be fully settled, insurers are facilitating interim payments where appropriate, subject to the relevant policy terms and reinsurance arrangements.

The IAJ said it would continue monitoring claims and engaging with member companies, the Financial Services Commission, brokers, loss adjusters and affected stakeholders.

The figures cover specified categories of claims reported by participating insurers and may change as assessments and settlements continue. A claim is considered settled when full and final payment has been made, or when it is closed because the insurer has no liability, the claim is withdrawn or the loss falls below the deductible.