The Insurance Association of Jamaica (IAJ), says Jamaicans should brace for an increase in property insurance rates.

According to the IAJ, property owners will see their premiums go up by between 30 and 35 per cent as reinsurers have been adjusting their rates to recover from the massive losses incurred during the active 2017 Atlantic Hurricane Season.

IAJ Vice President, Peter Levy, says while Jamaica was not hit by any of  the hurricanes the country faces similar risks as Puerto Rico, Dominica and St. Maarten which were devastated by Irma and Maria.

He explained that reinsurers pool premiums from all their customers so they can pay the claims of  those who suffer damage.

The new reinsurance rates take effect on January 1

Levy says the subsequent increase in premiums could have a negative impact on the general insurance industry.

Meanwhile,  reinsurer Lloyd’s of  London has to date paid claims worth US$1.7 billion in response to Hurricanes Harvey, Irma and Maria.

Lloyd’s has estimated a total commitment of US$4.8 billion for the three storms.

German reinsurer Munich Re announced last month that it faced US$3.72 billion  to cover damage from the three hurricanes.

The Insurance Journal estimated that this year’s Atlantic Hurricane Season was the most expensive on record causing US$202.6 billion in damage.

There were 17 named storms, ten hurricanes and six major hurricanes.

This was higher than the National Hurricane Center’s average of  12 named storms, six hurricanes and three major hurricanes.