In recent years, Jamaican homeowners have faced significant increases in property insurance prices. Unfortunately, these higher costs are expected to continue, especially with the forecast following an active 2024 hurricane season. But why have insurance prices been rising and what can homeowners do to manage the situation going into 2025?
Why Are Insurance Prices Going Up?
The main reason behind the rising insurance premiums (the cost you pay for coverage) is the tightening of the international reinsurance market. Reinsurance is a way for local insurance companies to protect themselves from large losses. Since Jamaica is a small island and faces major risks like hurricanes and earthquakes, local insurance companies rely heavily on international reinsurers to share the financial burden. In fact, up to 95% of their risks are reinsured by companies outside Jamaica.
However, in recent years, reinsurers have been pulling back from the Caribbean, moving their money to areas that are considere…
