By ANNELIA NIXON

Tribune Business Reporter

anixon@tribunemedia.net

A Cabinet minister says the government is “most concerned” that The Bahamas retains enough insurance capacity to provide homeowners and businesses with hurricane protection that is affordable and accessible.

Michael Halkitis, minister of economic affairs, noting trends elsewhere, said: “I think one of the things that most concerns us is the fact that you might have heard that, in certain areas of the US, Florida, the eastern sea boards, North Carolina, for example, you have insurers that are actually removing themselves and not having coverage.

“And that is something that’s concerning to us here, because if that trend expands - as we have more and more frequent and more violent hurricanes - the lack of availability of insurance not only affects people who are already here, our citizens, it has impacts for investment and people, if they can’t get insured, they might be less likely to invest their money. That has implications for the economy.

“So that is something that we’re watching. It was very, very important for us a few years ago to be able to get off that European Union (EU) blacklist because that had implications for insurance. And so you see, a lot of these things are intertwined. And so it’s one cog in our economy, a very, very important cog, and we just have to make sure that we do the best to protect it.”

Mr Halkitis said the Government will continue to back the Insurance Commission of The Bahamas (ICB) in its regulation of the industry, and its goal to better educate the public. “One of the main things that is on the agenda of the Government, and has been for quite a long time, is the amalgamation of the domestic and the foreign insurance legislation,” he added.

“That’s ongoing work, but for the immediate future, we continue to support the work of the Insurance Commission, making sure that they have the resources to regulate the industry, educate the public, particularly about not only insurance as it is, but the prospects of the future of insurance with us living in the hurricane zone, being very, very susceptible to climate change.

“There is a very, very real possibility of even more lack of access to insurance, particularly property insurance, for this region through no fault of our own, but just because of the financial models of insurance companies,” Mr Halkitis continued.

“So a big part of what they do is education,” he added, speaking after the Insurance Commission’s opening of Silk Cotton House, its new headquarters. “You heard this evening, the superintendent speak about the fact that they have expanded - and they have really made a thrust towards - consumer education and understanding insurance, what the importance of it is.

“And not only health insurance or life insurance, but property insurance or the other types of insurance. So, over the long-term, we continually look to refine the legislation as it stands now. We continue to make sure that the Insurance Commission is properly resourced with individuals, proper training, exposure etc so that they can serve the public.”

Mr Halkitis, praising the Insurance Commission, said the regulator has become a member of the United Nations Development Programme (UNDP) sustainable insurance forum; a member of the International Association of Insurance Supervisors, the IAIS; and established working agreements with the Bermuda Monetary Authority and Organisation for Economic Co-Operation and Development (OECD).

“In 2024, when six out of eight Eastern Caribbean countries deferred implementation, the Commission advanced its implementation of the International Financial Reporting Standard, the IFRS 17, and it conducted its final quantitative impact study and approved key functions and products with precision and prudence,” he added.

“These efforts have fortified the sector’s financial soundness, with capital adequacy ratios ranging from 134 percent to over 3,500 percent, underscoring the resilience and solvency of our insurers. Even in this space, I am told, countries are now reaching out to the Commission for assistance with the implementation of the standard.

“And so, ladies and gentlemen, this is not merely regulation. It is strategic stewardship. It is the assurance that our regulatory institutions are well governed, our risks are well managed, and our policyholders are well protected. The Commission’s work strengthens public trust, attracts international investment, and reinforces The Bahamas reputation’ as a secure and sophisticated financial jurisdiction in insurance.”