- September 20, 2016
- Posted by: Admin
- Category: Blog
In Jamaica the Insurance Industry is regulated by the Financial Services Commission (FSC). The FSC is an integrated financial services regulator formed by the Jamaican Government in August 2001. They created the Financial Services Commission Act, 2001.
This regulatory body started operating after the Jamaican market experienced a meltdown in the financial sector (insurance and banking). These Regulations made significant changes as to how insurance companies must operate, invest, account and calculate solvency. These standards also include improved corporate governance and reporting criteria.
Natural disasters happen worldwide every day, (- Hurricane Sandy, Earthquake in Haiti & Chile Tsunami in Japan). This increases reinsurance costs resulting from the heavy financial losses suffered in other regions of the world. This may cause Reinsurers to reduce their capital in certain regions due to high losses and or low return on capital due to low premiums in affected countries. These worldwide disasters can also have an impact on insurance rates in Jamaica. The Caribbean is considered to be a high risk for Hurricane and Earthquake catastrophe events. The overall effect of this may result in higher premiums in local insurance market.