Peter Levy, managing director of general insurer BCIC and vice-president of the Insurance Association of Jamaica.

Insurance expert Peter Levy agreed on Tuesday that the veering away of Hurricane Matthew resulted in Jamaica missing the equivalent of a bomb.

He expects few general insurance claims, based on early indications. But the damage from water accumulation remains to be seen, said Levy, managing director of BCIC and vice-president of the Insurance Association of Jamaica.

BCIC is one of 10 registered companies which offer general insurance for individuals and businesses. Nine of the 10 are operational, according to government data.

Levy explained that a direct hit from Matthew would have resulted in an already bad year for property insurance becoming far worse.

“Property insurance is having its worst year in recent times. We experienced the loss from the Wisynco fire, and before that the loss at the hotel under construction in Negril. Then the flooding by Marcus Garvey Drive in September – there was a lot of damage to coffee and sugar, among other items,” he said.

“So a hit or near-miss from a serious storm might have an impact in the way that reinsurers view the level of risk in Jamaica,” he added, indicating that higher risk usually results in a higher cost to insure portfolios for the local insurance sector and, therefore, higher premiums to consumers.

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