Nearly a year on, insurers move to clear outstanding Hurricane Melissa claims

The Insurance Association of Jamaica (IAJ) says its member companies are intensifying efforts to resolve outstanding claims from Hurricane Melissa, acknowledging concerns about delays almost a year after the storm.

Industry data compiled by the IAJ show that 90% of motor claims and 77% of Jamaican dollar-denominated claims had been fully settled and paid as of the end of September.

However, progress has been slower for non-motor and US dollar-denominated claims, with 54% of non-motor claims and 49% of US dollar-denominated claims fully settled.

The association said the outstanding claims continue to place financial and operational pressure on families and businesses recovering from the hurricane.

“Our responsibility is to ensure that the remaining claims receive the attention they require and that policyholders are kept informed throughout the process,” IAJ President Rosemarie Henry said.

The IAJ said its members are reviewing every outstanding Melissa claim, with particular attention being given to cases where there has been limited recent communication, loss-adjuster reports remain outstanding, settlement offers are awaiting resolution or reinstatement work is still underway.

Member companies are also being asked to provide policyholders with updated information on their claims, identify a clear point of contact, explain the basis of settlement offers and provide clear next steps and, where reasonably possible, an expected timeline for completion.

The association said some claims cannot yet be fully settled because reinstatement work remains incomplete or final losses cannot yet be determined. In those cases, insurers have made and will continue to consider interim payments where possible under the terms of the insurance contracts and applicable reinsurance arrangements.

The IAJ said the scale of Hurricane Melissa resulted in an unusually high concentration of property claims and placed significant demands on loss-adjusting resources.

Where loss-adjuster reports remain outstanding, insurers are working with the loss-adjusting community to move claims forward, including reassigning responsibilities where feasible and identifying cases that can proceed without further unnecessary delays.

The association's announcement comes amid public concerns from the Jamaica Hotel and Tourist Association (JHTA) about the time being taken to resolve some hurricane-related claims, as well as questions about settlement calculations, deductibles, property valuations and the application of the average clause.

“We have heard the concerns raised by the tourism sector and we take them seriously,” Henry said.

She said the industry intends to work with members and stakeholders to address those concerns while ensuring claims are assessed in accordance with the terms of individual policies.

Everton McFarlane, executive director of the IAJ, said the association's latest figures were intended to show both the progress made and the areas requiring greater attention.

“When we report a claim as closed, we mean that all outstanding obligations related to the claim has been paid,” McFarlane said.

He said the association's immediate focus is on accelerating outstanding claims and moving as many as possible toward final settlement and payment.

The IAJ said policyholders should be able to understand how their settlements are calculated, how relevant policy provisions are applied and where to raise questions about individual claims.

Tammara Glaves-Hucey, chair of the IAJ's General Insurance Committee, said insurers also need to communicate clearly when additional information or assessments are required or when questions about settlements arise.

The association said it will continue monitoring claims progression with its member companies and working with the Financial Services Commission, the Jamaica Insurance Brokers Association, the Loss Adjusters' Association of Jamaica, the JHTA, policyholder groups and other stakeholders.

“Hurricane Melissa tested Jamaica at every level, including our insurance ecosystem,” Henry said, adding that the industry needs to learn from the experience and strengthen claims communication and the broader policyholder experience.

The IAJ said its priority is to bring the remaining claims to conclusion as efficiently, fairly and transparently as possible while maintaining the contractual obligations governing the insurance system.