Insurance premiums could go up by 30%

[Duane 3NE 2NR]

If you are paying more on your vehicle and property insurance premiums, here’s why.

Local insurance companies are being driven to increase their insurance premiums by their reinsurers, those large global companies that provide support to insurance companies in the event of a catastrophe, such as a hurricane or an earthquake.

In a full page newspaper advertisement published on January 6, 2021, the Association of Trinidad and Tobago Insurance Companies (ATTIC) said T&T insurance premiums are going up for global and local reasons.

The global reasons include low interest rates, more than three years of global catastrophe losses, increased court judgments and settlement as well as the uncertainty surrounding Covid-19.

“Contrary to these international trends, average property insurance premiums in Trinidad and Tobago have declined and are significantly lower than other Caribbean territories. This trend is no longer acceptable for well-known reinsurance supporters of our market,” according to the ATTIC statement, which added, “Exacerbating this situation is the long delays in reinsurers being paid because of constant challenges faced by local insurers in accessing foreign exchange to make reinsurance payments.

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[Dizzy28]

Insurance MC!!!!!!

[redmanjp]

we haven't had any disasters here - and how is covid causing a risk to properties in terms of insurance? inability to earn revenue due to it should have nothing to do with it

[Ben_spanna]

they need to start blacklisting PH drivers and all those plain white panel vans with "T" registration that running taxi too, or raise their premiums by 75% when they are caught .

[Duane 3NE 2NR]

we haven't had any disasters here

Their reinsurers are raising premiums

[teems1]

we haven't had any disasters here - and how is covid causing a risk to properties in terms of insurance? inability to earn revenue due to it should have nothing to do with it

It's reinsurers raising their rates.

Companies like SwissRe, MunichRe, Lloyds etc.

By law you have to use reinsurance for sum insured over certain amounts.

[redmanjp]

we haven't had any disasters here - and how is covid causing a risk to properties in terms of insurance? inability to earn revenue due to it should have nothing to do with it

It's reinsurers raising their rates.

Companies like SwissRe, MunichRe, Lloyds etc.

By law you have to use reinsurance for sum insured over certain amounts.

yeah but they should ideally give a discount for regions with little or no disasters which means fewer claims but is like peter paying for paul

[Rovin]

they always gonna find some kinda reason to raise sh1t & charge ppl more ...

[teems1]

we haven't had any disasters here - and how is covid causing a risk to properties in terms of insurance? inability to earn revenue due to it should have nothing to do with it

It's reinsurers raising their rates.

Companies like SwissRe, MunichRe, Lloyds etc.

By law you have to use reinsurance for sum insured over certain amounts.

yeah but they should ideally give a discount for regions with little or no disasters which means fewer claims but is like peter paying for paul

How the people see insurance companies as "ole tief who don't give any relief", the local insurance companies sees the foreign reinsurers as that.

It sucks that legally their hands are bound and have to use them, but to have large negative cash flows out of an insurance company due to a big sum insured claim is too much of a risk.

[sMASH]

nature of the beast. me, jess dont want to pay out of pocket if i ever get wrong with a porsche or prado.

[Greypatch]

pass the buck...ride the small man to make yuh shortfall and maintain income

[88sins]

we haven't had any disasters here - and how is covid causing a risk to properties in terms of insurance? inability to earn revenue due to it should have nothing to do with it

It's reinsurers raising their rates.

Companies like SwissRe, MunichRe, Lloyds etc.

By law you have to use reinsurance for sum insured over certain amounts.

yeah but they should ideally give a discount for regions with little or no disasters which means fewer claims but is like peter paying for paul

Basically, yeah.
If you have 100 clients, and 80 of them claiming often while 20 of them hardly ever file claims, you crank up everyone's rates, so the ones that don't really claim paying an increase in premiums to offset the cost of insuring the ones that do.

[rollingstock]

we haven't had any disasters here - and how is covid causing a risk to properties in terms of insurance? inability to earn revenue due to it should have nothing to do with it

It's reinsurers raising their rates.

Companies like SwissRe, MunichRe, Lloyds etc.

By law you have to use reinsurance for sum insured over certain amounts.

yeah but they should ideally give a discount for regions with little or no disasters which means fewer claims but is like peter paying for paul

That's basically what insurance is.

[Chimera]

those reinsurers must be suffering abroad with covid

working from home, laid off, cant afford car or no need for it , no need for insurance
then it have the loss of income insurance where they pay you an income if you lose your job, but i know them insurance companies does have all kinda clauses with act of god and natural disaster where they get out of paying clients


is real muddac**t flabbergastery with all them insurance companies

[Chimera]

and i guess they would have massive payouts from people who die through covid

[Chimera]

How can pandemic risks be priced?
The underlying premise of insurance is a transfer of risk. Individuals (policyholders) swap a potentially large and unknown outgoing for a known, typically smaller outgoing (the premium paid) with an insurance company. The insurer then pools all the risks together and, by doing so, it seeks to forecast, manage and pay out claims.

The multi-faceted nature of the Covid-19 pandemic has meant that it has affected many lines of business where there is insurance coverage. The affected areas include, but are not limited to, business interruption (for example, disruption to supply chains and inability to operate as normal due to government measures), trade credit insurance (cover for businesses if customers who owe money for products or services delay payment or do not pay at all), travel, cyber liability (due to increased working from home) and event cancellation.

Consider, for example, Wimbledon, the world’s oldest tennis championship held in London every June. The pandemic insurance coverage for the event is expected to result in a £114 million payment due to the cancellation of this year’s tournament (Brodies LLP, 2020). A more extreme example of an insurance payment due to event disruption is the postponement of the Olympic Games in Tokyo, with Jefferies analysts estimating the insured cost of the event at $2 billion (Insurance Journal, 2020).

While many insurers have considered and priced pandemic risk into their insurance risks, the global effects of Covid-19 have led to many risk commentators describing it as a ‘black swan’ event (McGillivray, 2020) – in other words, an event that lies outside the realm of regular expectations (Taleb, 1999).

Pricing a very low probability unexpected event is difficult, as a lack of historical data impedes the modelling of future risk events occurring. With very few pandemics in the last century, pandemic risk falls into this category. With this in mind, it is evident that the pricing of pandemic risk within insurance has not been fully understood and allowed for.