“The level of insurance coverage within Barbados and the Caribbean is significantly lower than ideal relative to our population size. We are committed to improving this situation, which we believe is crucial to fortifying the financial future of many individuals and families.”
This from Executive Vice President and General Manager of Sagicor Life (Barbados) Inc, Paul Inniss, while speaking on the topic, “The Face of Next Generation Insurance”, during the 2021 edition of the Barbados International Business Association’s (BIBA) Global Business Week of activities.
Inniss stated that in 2019, the average market penetration rate in developed countries for insurance (life and non-life) was 3.8 per cent. In Barbados, this rate stood at 2.7 per cent, with Trinidad & Tobago and St. Lucia recording 2.8 per cent and 2.3 per cent respectively.
“Globally it is understood that 3.8 per cent is far below what should be considered a good rate of insurance coverage of any population, therefore, when we look at the Caribbean figures, we can see that these markets are lagging significantly behind. It therefore means that if the rest of the globe is currently described as underinsured, that we in the Caribbean are in a worse off position,” he stated.
Inniss made the point that underinsurance is viewed as a risk for individuals and families given the resulting difficulty or inability to recover from financial shocks. “For example, if an individual becomes seriously ill and requires significant and costly medical care, the expenses associated with the latter are often too much for them to handle on their own. In the case where an individual dies or can no longer earn a living due to illness or disability, the impact on their family could be significant especially if they were the principal bread winner.”
The Executive Vice President pointed to the ongoing COVID-19 experience as a perfect example of the immense value and importance of being adequately insured, stating that throughout this time many individuals and families have seen the benefit of having a financial safety net in the form of an insurance policy.
“No one would’ve started 2020 expecting to suffer a reduction in income from working less hours or being laid off from work temporarily, however, life is full of uncertainties that we should try our best to prepare for.
“As a result of these unexpected occurrences, some individuals would have found themselves in a position where they could not meet their financial obligations. Thankfully however, being able to access funds from their policy has gone a long way towards helping them to ride out this difficult period,” he said.
Inniss argued that it is the responsibility of companies like Sagicor to work towards increasing the level of coverage throughout the Caribbean’s populations, stating that public education is the first step.
“The insurance industry has a responsibility and important role to play in the continued education of customers and prospects. We still have a lot of work to do to dispel the uninformed views and opinions on insurance validity, along with the common misconception that it is simply a necessary evil.
“Throughout COVID, we at Sagicor grasped the opportunity to put together a comprehensive, wide-reaching education campaign, which is ongoing, and utilizes appropriate and relevant channels, including various media and online presence, seminars, podcasts, the list goes on and on.
“We are committed to providing the right kind of information to the public, at their convenience and in a manner that they can understand and on matters that are important to them and the role insurance plays in protecting them.” (PR)
