Wed, 01 Oct 2025

Wed, 01 Oct 2025 Hurricane season brings financial fears in the Caribbean

As islands brace for this year's big storms, many homes don't have household insurance.
Eight years have passed since Hurricane Irma ravaged Barbuda and other Caribbean islands, leaving many with traumatic memories and destroyed homes. However, despite the growing risk of natural disasters in the region, home insurance remains unaffordable for most residents. Industry figures show that premiums have increased by up to 40% on some islands over the past two years, making it difficult for people to protect their properties. Dwight Benjamin, a Barbudan resident, was one of the few who managed to save his home from the devastating winds of Irma. He has since invested in a concrete-roofed extension that can serve as a shelter in case of another disaster. However, like many others, Dwight does not believe in investing in insurance, citing it as an unnecessary expense. The majority of homes on islands affected by hurricanes are uninsured, with only 20% of residents in Jamaica and half in Barbados having cover. Peter Levy, the boss of Jamaican insurance company BCIC, points out that the Caribbean's unique market poses a high risk due to frequent storms, earthquakes, and volcanic eruptions. As a result, premiums remain high, often exceeding 1.3-1.7% of a home's value in Antigua and Barbuda. In contrast, similar coverage in the UK can be obtained for less than 0.2%. The Atlantic hurricane season is now in full swing, with many Caribbean residents anxiously monitoring weather platforms for potential threats. For those affected by Irma, even thunderstorms can trigger flashbacks of the devastating night. In an effort to mitigate the impacts of natural disasters, the Caribbean Catastrophe Risk Insurance Facility provides low-cost disaster coverage to member governments. The UNDP has also played a crucial role in providing financial assistance and training for local residents to help with rebuilding efforts after Irma. As the region prepares for another hurricane season, experts emphasize the need for proactive measures to address the changing climate and increasing frequency of natural disasters.
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