“I Know Insurance Is Hard, But It’s A Necessary Evil With Climate Change”

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NASSAU, BAHAMAS – June 1st may seem far away, but insurance officials say now is the time to prepare for hurricane season.

Over the years, storms of all categories have passed through our chain of islands, oftentimes leaving a path of destruction in their wake.

The majority of these homes were uninsured or not insured at all.

And for Superintendent of the Insurance Commission of The Bahamas, Dana-Munnings Gray, the threat of climate change means having insurance is now more important than ever.

“We also live in a country where we are geographically located in, you know, the belt of the U.S. and other countries that face storms. Our reinsurers are looking for ways to de-risk. So I say to people, if you have insurance, I know it’s difficult to maintain, but it is a necessary evil at times, particularly when we all face climate change issues and risks,” says Dana-Munnings Gray – Superintendent, Insurance Commission of The Bahamas.

But why are so many people hesitant to insure?

“We find that people oftentimes look at the cost of insurance, and so they don’t really consider the true value of their most valuable and prized possessions in their homes. And so, if a home is valued at 500 thousand, they may only get 300 thousand dollars in coverage, which means if your house or home is damaged beyond your repair, you’re not getting the full value. So that’s what underinsurance is about, and the Insurance Commission is about ensuring that our consumers, our key stakeholders, are aware,” says Dana-Munnings Gray.

Hurricane Dorian comes to mind as one of the most devastating storms to hit our country.

The Category 5 storm battered Grand Bahama and Abaco in 2019, claiming the lives of hundreds—some loved ones still missing to this day. Homes and businesses across the north were also left fully destroyed or badly damaged.

Laisa Thompson, an insurance professional in Grand Bahama, says insurance was the only way many people were able to get back on their feet.

“Insurance has definitely been the bridge—the gap that brought people back from devastation to some degree of normalcy. Without it, a lot of people would have had to start from nothing. The loss of life is one thing, but the loss of everything you’ve worked for is also a very, very serious matter. Insurance has enabled people to regroup and reset their lives,” says Laisa Turnquest – Director of Life & Health, Freeport Insurance Agents & Brokers.