Melissa payouts top $54 billion, says IAJ

THE Insurance Association of Jamaica (IAJ) is reporting that $54.35 billion in total property and motor insurance payments have been made islandwide, saying that the figure represents an 89.5 per cent settlement rate across specified categories of claims relating the Hurricane Melissa. Highlighting the devastating impact of the October 28, 2025 Category 5 storm on western Jamaica, the report notes that St James received $30.55 billion, or 58.8 per cent of total property payments, followed by Hanover with $3.52 billion, and Westmoreland with $2.94 billion. Combined, those parishes received $37.01 billion, or approximately 71.2 per cent of recorded property payments. St Elizabeth, however, recorded relatively low insurance payouts, despite being among the parishes hardest hit by Hurricane Melissa. The IAJ attributed this to the parish’s low level of insurance penetration, saying that it highlights a significant protection gap and the vulnerability of uninsured and underinsured property owners. According to the IAJ, 8,357 of the 9,340 claims received were settled as at September 30, 2026. The remaining 983 claims are yet to be resolved. Motor insurance claims recorded the highest settlement rate at 96.5 per cent, while 85.7 per cent of residential property claims and 83.1 per cent of commercial property claims have been settled. Engineering claims remain the most challenging, with just 55.2 per cent settled, the IAJ said in a news release. Commercial and residential property claims account for 740 of the outstanding claims, representing about 75 per cent of the unresolved cases. The report comes amid growing public concerns about delays in insurance settlements, including questions about deductibles, property valuations and underinsurance. The IAJ noted it has acknowledged the concerns, saying it is working with insurers, loss adjusters, and policyholders to address issues holding up payments. IAJ President Rosemarie Henry said the publication of the latest figures is intended to give Jamaicans a clearer understanding of the scale of the industry’s response and its remaining work. “Jamaicans have been asking important questions about the insurance industry’s response to Hurricane Melissa, and those questions deserve clear, factual answers. By providing more detailed information on the number of claims received and settled, the amounts paid, and the areas where claims remain outstanding, we want the public to be able to assess the progress for themselves. We recognise that these figures will also invite further scrutiny, and that is an important part of accountability,” the release quotes Henry. “We cannot ask the public to have confidence in the insurance industry without being prepared to demonstrate how we are responding. The $54.35 billion recorded in payments reflects the significant financial contribution insurers have made to Jamaica’s recovery, however it does not diminish our responsibility to those whose claims remain unresolved. We intend to continue providing meaningful updates and engaging openly on the issues that require attention,” added Henry. Tammara Glaves-Hucey, IAJ vice-president for general insurance, said the latest data clarify which claims remain outstanding and where greater focus is needed to speed up their resolution. “We recognise that policyholders have had different experiences throughout the claims process. While some claims have been settled relatively quickly, others have taken considerably longer. We have taken important lessons from this experience and are applying them to strengthen our processes and improve responsiveness,” Glaves-Hucey said. “Through continued collaboration among insurers, loss adjusters, and policyholders, we are working to bring all outstanding matters to resolution as expeditiously and fairly as possible, while ensuring that these lessons inform how we respond to future catastrophic events,” she added. Glaves-Hucey assured that the association will continue to monitor claims progression and maintain engagement with all stakeholders to ensure smooth resolution of outstanding matters. “Insurance exists to provide financial protection when people need it most. Hurricane Melissa has tested that promise on an extraordinary scale, and we recognise that confidence in the industry will ultimately be measured by how we respond to the claims that remain outstanding,” Glaves-Hucey said. “We are committed to continued transparency, constructive engagement, and ensuring that the lessons from this experience lead to a stronger and more responsive insurance sector for Jamaica,” she added.