The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

A prominent Bahamian insurer is eying close to $60 million in Hurricane Matthew-related payouts, a senior executive saying it has settled between 2,000-3,000 claims.

Charles Johnson, senior manager at J S Johnson Insurance Agents and Brokers, while speaking on the sidelines of a press conference to announce the Royal Fidelity Bahamas Economic Outlook set for January 31, said: “We don’t have the industry figures as yet.

“We are trying to put them together but we’re looking at a total payout of around $500 million. J S Johnson is probably running to near $60 million, and the number of claims is going to range between 2,000 and 3,000 claims.”

J S Johnson, as an insurance agent and broker, places much of its property and casualty business through its ‘tied’ underwriter, Insurance Company of the Bahamas (ICB).

Mr Johnson added: “I think we are now really at the adjustment and payout stage. Most of the properties would have already been paid out and accessed.”

He said that Matthew, which made landfall in the Bahamas last October as a Category Four hurricane, was one of the strongest storms this nation has witnessed in many years.

“What was unique about it is that it affected many of the islands of the Bahamas, including Nassau, where we and most insurance companies probably have 80 per cent of our business,” Mr Johnson said.

“Had we received a direct hit in New Providence, it could have been devastating. I think the industry is well prepared to deal and respond to the losses. We are responding to the losses.”

Acknowledging consumer concerns over higher premiums in the wake of Hurricane Matthew, Mr Johnson said: “I don’t think there is any major concern with regards to an increase in insurance premiums.

“People have inquired about that. The rates are driven by our reinsurers. I think when they are in a position to assess their losses, it will determine whether there is any rate increases, but I personally don’t think that will be a problem.”