At least one local insurance company is saying some reinsurers on the international market with which they do business in the Caribbean are leaving the market.

Peter Levy, Managing Director of British Caribbean Insurance Company (BCIC), said so far, a few have decided to either cut off the region or reduce coverage.

He said the BCIC is currently trying to secure the capacity to renew its reinsurance contracts on January 1.

“If there isn’t sufficient capacity based on the reinsurance structure that we had in 2022, then we’ll have to restructure and we might end up with more risk net to our balance sheet. That, of course, is very much constrained by the capital requirements from the FSC and Insurance Act,” he explained.

He said if all reinsurers leave the market, it may not affect the company’s security, however, shareholders may be forced to live with a higher level of risk.

Recently, insurance players have expressed concern that global reinsurers, which provide backing for insurance companies in the region, are reducing their capacity to on-lend.

Factors including increased global disasters and lower insurance premiums in the region have been cited as issues influencing their decision.