Property Insurance Challenges in the ECCU: ECCU
Selected Issues Papers, May 30, 2025
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- Property Insurance Challenges in the ECCU: ECCU
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Bibliographic details
- Authors: Janne A Hukka, Jonas Nauerz
- Published: May 30, 2025
- Series: Selected Issues Papers
- DOI: https://doi.org/10.5089/9798229012775.018
Overview and Key Findings
- Property insurance affordability is a growing challenge for the ECCU.
- The region has a high reliance on global reinsurance to manage risks in high-exposure products like property.
- Recent tightening of global reinsurance market conditions has largely passed through to local premiums and has constrained capacity to extend coverage.
- Rising costs exacerbate acute non- and under-insurance challenges in the region.
Risks and Macroeconomic Implications
- Elevated premiums and constrained coverage can worsen economic and fiscal impacts of natural disasters.
- Further exacerbation of protection gaps could raise broader macro-financial stability risks by weakening:
- asset quality
- credit conditions
Recommended Readiness and Policy Actions
- Strengthen insurance data collection.
- Enhance risk analysis capabilities.
- Bolster regional supervision.
- Use improved data, analysis, and supervision to:
- inform appropriate design and calibration of policies to help close protection gaps,
- contain future market pressures,
- mitigate broader financial system risks.
Subject Tags and Keywords (as provided)
- Subject: Financial institutions, Insurance, Insurance companies
- Keywords: Caribbean, challenges in the region, ECCU, Financial Supervision, Global, Insurance, Insurance companies, insurance data collection, Insurance Premium, market condition, Property Insurance, risk analysis
Source: Property Insurance Challenges in the ECCU: ECCU, Janne A Hukka and Jonas Nauerz, May 30, 2025.
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- Property Insurance Challenges in the ECCU