As The Bahamas and other neighbouring Caribbean islands are still reeling from frantic hurricane preparations, numerous states of emergency and, ultimately, the expansive devastation caused by Hurricane Dorian, the focus of the international insurance industry has once again shifted to how countries that are vulnerable to climate change can guard against disaster.

Worldwide, billions of US dollars in damages have been recorded in the last year alone, as shown in developing countries such as Mozambique and Tonga and in even larger territories such as the United Kingdom — all of which have suffered from climate change-related phenomena such as tropical cyclones and extreme freeze, according to a recent news release from GK Insurance.

In addition, a recent report from the world’s largest reinsurance firm Munich Re has warned that climate change could eventually make insurance too expensive for people globally. Nicolas Jeanmart, head of personal insurance, general insurance and macroeconomics at Insurance Europe, says: “The [insurance] sector is concerned that continuing global increases in temperature could make it increasingly difficult to offer the affordable financial protection that people deserve and that modern society requires to function properly.”

The release states that Jamaica has also seen recent changes due to climate change, including experiencing the hottest day ever recorded in Jamaica this summer and local sea waters producing much more dead seaweed on beaches islandwide.

Climate change will also likely impact the island’s hurricane season in the coming years according to Glenroy Brown, climate service specialist in the Meteorological Service of Jamaica. He said, “We are expecting more warm days. The reason for that is [abnormally] warm temperatures actually occurred in June, and June is not normally one of the warmest months in Jamaica. Generally, that would occur between July and August.”

Noting the local effects of climate change on this year’s hurricane season, GK Insurance’s (GKI) Tammara Glaves-Hucey, assistant general manager — personal lines, claims & legal, advises that Jamaicans should be proactive and seek adequate protection by insuring personal assets, such as home and contents, against these major perils now. “This kind of insurance is important as it helps to protect valuable assets and gives the insured peace of mind when faced with a loss.”

The insurance arm of the GraceKennedy Group now offers Premier Home owners Comprehensive Coverage, which provides indemnity for the insured’s loss, damage, liability or injury during the period of insurance.

The company also offers solutions for persons who are not homeowners to protect the residence’s contents. Glaves-Hucey explained, “Usually, the landlord’s insurance policy does not cover tenants’ contents and assets. So, we urge tenants to ensure that they protect their investments.”

In developing countries fast payouts should also be a priority, as rapid response means that infrastructure can be redeveloped and the general public and businesses can return to operations faster, thereby reducing long-term losses. Equipping with insurance can give small and developing countries the ability to cope with the storms expected for the duration of the season.

Though this type of insurance offering is generally underutilised in Jamaica, Glaves-Hucey stated that she has noted an increase in the sale of insurance protection against hurricanes and other natural disasters at her company. She said, “There is usually an increase in people purchasing insurance if there is indication of an active hurricane season or in instances where our sister islands are experiencing increased activity from hurricanes or storms.”

She urges, however, that proactivity is the better option. “The data at hand suggests that most people remove the insurance from their home once they have completed their mortgage payments. However, the property can still be the subject of a loss in the event of a hurricane or storm and, as such, we strongly recommend that people take the insurance step to protect their assets.”