Windstorm Insurance Remains Available in USVI Despite Global Insurance Market Pressures, Lt. Governor Assures
Lieutenant Governor Tregenza Roach on Tuesday assured the availability of windstorm insurance coverage in the U.S. Virgin Islands. In his capacity as commissioner of Insurance, Mr. Roach's Division of Banking, Insurance, and Financial Regulation has convened with the Virgin Islands Insurance Association and authorized Property and Casualty (P&C) insurance companies to address concerns regarding the availability and affordability of these products in the territory.
2023-07-13 17:09:17 - VI News Staff
The global insurance market is currently in a 'hard market' phase, characterized by an upswing in premiums, limited coverage, and overall decrease in the availability of most types of insurance, according to Mr. Roach's office. This has been caused by a combination of market forces and an increase in the scale and severity of natural disasters, such as hurricanes, floods, wildfires, and earthquakes.
"In the face of these global trends, like Florida and other hurricane-prone Caribbean islands, the Virgin Islands is feeling the pressures of the hard insurance market, especially in the homeowners’ market," he said. The lieutenant governor further noted that the current circumstances have led to some reinsurance companies and direct insurers exiting the territory's insurance market, seeking higher profitability elsewhere.
The remaining insurance companies in the territory are limited in the amount of coverage they can offer, according to Roach. This is further exacerbated by reinsurers' requirement that insurers reduce the amount of coverage they provide for wooden or mixed frame construction, deemed high risk due to their increased vulnerability to windstorms. Homeowners with these construction types may therefore face non-renewal of their coverage or difficulties in obtaining coverage in the admitted market.