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Wednesday,  May 22, 2024 5:00 AM 

Caribbean hotels brace for increased insurance costs

Caribbean hotels brace for increased insurance costs

Following this year’s record hurricane season, Caribbean hoteliers are preparing for insurance premium jumps of between 10 and 40 per cent, according to the Caribbean Hotel and Tourism Association.

Scott Stollmeyer, Managing Director, Barbados and Eastern Caribbean for CGM Gallagher Insurance Brokers, advised hoteliers during a CHTA webinar earlier this month entitled 'Hotel Property Insurance After the Storms.'

According to Stollmeyer, the Caribbean has enjoyed reduced insurance rates for the past eight years; however, following the hurricanes, insurance companies have begun reaching out to their clients informing them of the increases that will occur in their next renewal cycle for inland and beach properties. He explained this will lead to a "hardening" market: "We are going to be in for some challenging times in the next few years."

The increases are expected to affect the entire region, not only those islands that were struck by the hurricanes, Stollmeyer said.

"The Caribbean is lumped into one general region - it's where the reinsurance markets are looking at the Caribbean as a general region. Everybody is going to be impacted.”

In a statement to PAX, Frank Comito, CEO and director general of the Caribbean Hotel and Tourism Association, said that "we have no reason at this time to believe this will result in significant rate increases. Rates throughout the region have remained fairly stable as hotels continue to improve efficiencies and look at other ways to realize incremental revenue.”