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Insurance companies buy insurance too - Kishma A. Baronville

-Says increased premiums is a must due to surge in pay-outs
General Manager of Colonial Insurances, Ms Kishma A. Baronville has unveiled that insurance companies buy coverage from other insurance companies around the world, and thus, this makes it impossible for there not to be a rise in premiums to policyholders. Photo: Team of Reporters
An increase in the frequency of major calamities in the Caribbean and around the world have caused a surge in pay-outs by reinsurers. As a result, reinsurers have made demands for higher rates and deductibles,” the General manager said. Photo: Internet Source
An increase in the frequency of major calamities in the Caribbean and around the world have caused a surge in pay-outs by reinsurers. As a result, reinsurers have made demands for higher rates and deductibles,” the General manager said. Photo: Internet Source
The forum, which was held to raise more awareness of the insurance issues that some property owners are facing, was hosted by the BVI Financial Services Commission (BVI FSC), under its Money Matters BVI—which is the FSC’s financial literacy program. Photo: Team of Reporters
The forum, which was held to raise more awareness of the insurance issues that some property owners are facing, was hosted by the BVI Financial Services Commission (BVI FSC), under its Money Matters BVI—which is the FSC’s financial literacy program. Photo: Team of Reporters
ROAD TOWN, Tortola, VI - General Manager of Colonial Insurances, Ms Kishma A. Baronville has unveiled that insurance companies buy coverage from other insurance companies around the world, and thus, this makes it impossible for there not to be a rise in premiums to policyholders.

Ms Baronville made the revelation to stakeholders and policyholders when she was speaking at the Financial Services Commission (FSC) Money Matters Insurance Division which is currently working on a Code of Conduct for insurance companies. According to the body, they see the Code of Conduct as necessary following the disasters of 2017 and because of the many issues that were brought to the fore between policyholders and insurance companies.

We buy Insurance – Baronville

“Did you know that your insurance company purchases insurance? Then you are familiar with the term reinsurance,” said Ms Baronville as she went on to explain that insurance is coverage that is bought by the insurance company from another insurance company (the reinsurer), as a means to mitigate the risk of losses.

“All insurance companies buy into a global pool of reinsurance... Therefore, global catastrophes affect us all, reinsurance is put in place to protect the solvency,” she revealed.

Further, Ms Baronville said that given the there is no frequent major disasters in the BVI, this resulted in a soft market and lower rates compared to counterparts in the Caribbean Region.

“An increase in the frequency of major calamities in the Caribbean and around the world have caused a surge in pay-outs by reinsurers. As a result, reinsurers have made demands for higher rates and deductibles.”

She said rates may vary depending on the insurer and their arrangement with their reinsurers while noting to policyholders, that after repairs, the value of their homes increases, hence the coverage and premium would follow.

Increased Premiums

According to Ms Baronville, due to this surge in pay-outs, increased premiums must be charged to build reserves to prepare for any future disasters.

However, Acting Director of the FSC Insurance Division, Ms Trevecca Hodge said that they are working on some changes to the legislation as well as a Code of Conduct, which will provide guidelines for the insurance industry.

The forum, which was held to raise more awareness of the insurance issues that some property owners are facing, was hosted by the BVI Financial Services Commission (BVI FSC), under its Money Matters BVI—which is the FSC’s financial literacy program.

5 Responses to “Insurance companies buy insurance too - Kishma A. Baronville”

  • Grid (01/04/2019, 10:48) Like (21) Dislike (0) Reply
    There is a one insurance company them had 41 tribunal matters that should get close down.
  • fedup (01/04/2019, 13:04) Like (11) Dislike (1) Reply
    Why did the premium raise for people who didn't file a claim?
  • Bull Dawg (01/04/2019, 16:12) Like (4) Dislike (1) Reply
    That is so unfair to those who haven't claimed, for them to have their premium raised.
    Especially if they never ever claimed on their property.
    • Quiet Warrior (02/04/2019, 09:35) Like (4) Dislike (0) Reply
      Property or any other type of insurance is the pooling of resources by policy holders to protect against perils, ie, fire, windstorm, flood......etc. The larger the number of policy holders the lower the premiums paid by each policy holder. For example, the policy holders of a company with 500,000 customers will on average pay less than a company with say 10,000 policy holders. It is important to note that one does not have to file a claim for premiums to go up. Remember, insurance is pooling/sharing of resources to protect against perils so events , ie, hurricanes.......etc and action(s) by other policy holders could affect premiums. Moreover, after an event that resulted in a large payout, ie, hurricanes Irma and Maria, premiums typically increases to build reserves and solvency.
  • What Happens? (02/04/2019, 07:54) Like (3) Dislike (0) Reply
    When there is no disaster, premiums decrease? Yea right. Ms. Baronville is saying to us what the owners and shareholders of the insurance companies does not want to say themselves. To them it sounds like the robbery it is, but to her its just her job. Wow!


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