Holness wants insurers to fast-track Hurricane Melissa claims

Western Bureau:

Prime Minister Dr Andrew Holness has called on private insurance companies to speed up the settlement of claims linked to Hurricane Melissa, warning that delays are stalling Jamaica’s recovery.

Speaking on Thursday at a ceremony in Malvern, St Elizabeth, where letters of possession were handed over for 27 service lots, Holness commended the National Housing Trust (NHT) for its swift response to hurricane-related claims while challenging private insurers to follow suit.

“I want to commend the NHT for being quick in making the insurance payments, and I want to challenge the private insurers to speed up the payments on the claims. That is an important part of the recovery from Hurricane Melissa,” he said.

Holness also disclosed that, to date, the NHT has processed 3,835 claims valued at approximately $7 billion. While the entire amount will not be paid due to policyholder excess requirements, the agency has already disbursed about $2.85 billion.

“Effectively, they (NHT) have paid out almost half of the insurance claims,” he said. “Insurance claims aren’t processed that quickly, but the NHT has done a very good job, and I want to point that out to the country.”

As it relates to private insurers, Holness said he has received numerous complaints from citizens who reported that they assessed damages months ago but have yet to issue payments.

“I have had many letters from people writing to me to say, “my insurers, they have come, they have assessed, but I can’t hear anything. Nothing has been paid to me yet. I’m still in the negotiation,” he said.

Holness also pointed out that the delayed payouts prolong hardship and slow rebuilding efforts.

“I believe that they should pay you very quickly. Paying up the insurance is critical to the national recovery,” he added.

Interestingly, according to the Financial Services Commission (FSC) insurance companies have received a near sixfold increase in reinsurance funds to settle claims arising from Hurricane Melissa.

“This significant boost was primarily driven by a 472 per cent, or $77.7 billion, rise in reinsurance contract held assets from payouts from reinsurance companies that boosted claims recovery reserve related to the impact of Hurricane Melissa in October 2025,” stated the FSC Insurance Sector Review for the December quarter.

Holness also highlighted the broader role of the NHT in post-hurricane recovery, saying the agency has distributed more than 5,000 home repair grants valued at nearly $2 billion, granted six-month mortgage moratoriums to approximately 36,000 mortgagors in affected areas, and approved hundreds of special loans to help homeowners replace vulnerable zinc roofs with more resilient concrete slab structures.

According to Holness, the measures taken by the NHT demonstrates that public institutions can respond effectively and quickly in times of national crisis.

Nationally, Hurricane Melissa caused widespread destruction to homes, businesses, schools, health facilities, roads, and utility networks, while causing further disruption to economic activity across the tourism, agriculture, and commerce sectors.

According to the Planning Institute of Jamaica (PIOJ), total damage, losses, and additional costs were estimated at J$1.952 trillion (US$12.2 billion), which is equivalent to 56.7 per cent of Jamaica’s gross domestic product (GDP).

Earlier assessments by the World Bank and the Inter-American Development Bank put direct physical damage at US$8.8 billion, or about 41 per cent of GDP.

The losses encompassed homes, businesses, roads, bridges, utilities, schools, health facilities, tourism infrastructure, and agriculture, underscoring the unprecedented economic impact of the storm.

albert.ferguson@gleanerjm.com