President of the Barbados Association of Insurance and Financial Advisors Kweku Reid is reporting an increase in the number of entrepreneurs interested in obtaining insurance coverage.
He also pointed out that the local insurance industry was witnessing a commensurate increase in the number of individuals entering the profession.
“We are seeing an increase in the number of advisors, we are seeing an increase in the number of persons choosing this as a wonderful career to join,” Reid said, during a recent interview, following a monthly meeting of the association at the Lloyd Erskine Sandiford Centre.
Adding that the interest from people in the profession coincided with an uptick in the number of individuals starting their own business, Reid said: “those persons now who are starting their own business are aware of the benefits they saw their forefathers and their grandparents benefit from – insurance”.
“They are more interested in getting some type of insurance. Even though the younger generation is tending to move towards insurance where they get back the returns a lot faster, I have seen more persons buying insurance now as compared to 2018 and a few years before,” he explained.
He said: “I can say that there is a shift more towards life insurance as oppose to an endowment or investment policy. We have seen a fall back in the sales of mutual funds and investment type funds, but we are seeing an increase in persons looking for security, which is life insurance, to secure their families and protecting the income for their children when they go on to university.”
Stating that the average range in value for the policies being purchased was between $100,000 and $750,000, Reid attributed the bright spark to more confidence in the economy and Government’s promotion of entrepreneurship.
“I think this is mainly because persons are feeling more comfortable that the economy is moving, there is a rise in the economy – more tourists are coming to the island, more businesses are starting – so you have some of those individuals who are opening their own business who are really able to now start investing and paying for things,” Reid said.
Despite the positive signs however, the insurance advisor said he believed a lot more work was needed in order to drive the message home for individuals to get coverage, adding that his 200-member strong association has been playing its part by going into schools.
“One of the things the association is looking to do in our month of activities in July is to actually go out into the public where we share about wealth creation, budgeting and financial security,” he added.