B’dos insurance sector ready to compete under CSME

General insurance providers in Barbados are confident that they are in a position to take advantage of the opportunities to expand under a Caricom Single Market and Economy (CSME). John Jones, general manager of Caribbean Home Insurance Company, maintained this as he put the position of the General Insurance Association of Barbados (GIAB) during discussions over the weekend at the Sherbourne Conference Centre, on the Opportunities, Threats and Challenges for financial and non-financial services under the CSME. Arguing that there are entities in Barbados that are quite capable of expanding in the region, he said the fact that there would be a level playing field was a plus for local insurance providers. Jones told participants that the Eastern Caribbean and even Haiti represented huge potential markets.

Outlining some of the threats he envisaged under a CSME, the insurance boss said marginalisation of smaller companies was expected, though he believed the bigger ones would benefit from economies of scale. He also identified increased criminal and fraudulent activities that will come with the freedom of movement in the region. A lack of reinsurance capacity was also highlighted by Jones, who told members of public and private sectors that containing the cost of services and keeping them at competitive levels will be challenging. And while people of the region get used to the idea of operating as one, Jones said “managing change and cultural differences” will be critical for companies seeking regional expansion.

The top insurance executive insisted that with the CSME there will be a need for standardisation of the regulatory and statutory frameworks. “The challenge will be the political will and leadership, they need to buy into the issue,” he told colleagues in the financial and non-financial services sector. Jones also identified the challenge of “influential detractors” to CSME who he advised, needed to be brought on board in order to move forward.