MIAMI (CMC):
The Caribbean Hotel and Tourism Association (CHTA) says regional hoteliers should plan now for an increase in insurance premiums following the passage of two Category 5 hurricanes in September.
Hurricanes Irma and Maria caused widespread destruction and death when they hit the Lesser Antilles, particularly the islands of Barbuda, Dominica, the British Virgin Islands, Turks and Caicos Islands, St Martin, and Anguilla. The damage has been estimated at billions of US dollars.
The CHTA said that the new rates could be as low as 10 per cent and high as 40 per cent.
It said that at a recent webinar it hosted, Scott Stollmeyer, the managing director, Barbados and the Eastern Caribbean for CGM Gallagher, advised that now is the time to review coverage to ensure it is adequate to insure against possible future damages.
He said hoteliers should also look at ways to minimise the expected premium increases. Stollmeyer said that for the past eight years the Caribbean has enjoyed reduced insurance rates, but that will now change.
He said 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, adding this will lead to a “hardening” market.
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