by Linda Straker
- In 2018 insurance companies paid out EC$21.9 million in claims
- Motor vehicle claims accounted for 47% of total claims
- Health claims accounted for the 2nd-highest component of 26%
Based on audited financial statements in 2018, insurance companies in Grenada paid out EC$21.9 million in claims. This represents an increase of $2.1 million when compared to 2017 when the companies paid out $19.8 million.
Claims from general companies were $11,865,082 while life companies paid out $10,121,142.
“It was noted that motor vehicle claims accounted for the largest component (47%) of total claims while health claims accounted for the 2nd-highest component of 26%,” said the 2018 Supervisor of Insurance report which was tabled in parliament last week Wednesday.
Police records show that for 2018 there were 2,464 accidents that were in violation of the Road Traffic legislation. There are motor vehicles accidents which occurred that are not in violation of the law but are settled through insurance claims.
The report which is made in pursuance of Section 8 of the Insurance Act, covers the period for the year ending December 2018. It stated that overall there was an improvement in claims settlement for that year. The gross income for the industry for 2018 amounted to EC$113.1 million which is an increase from 2017 when the income for the year was EC$119.4 million.
“Gross premium income for general companies reflected an 11% increase while life companies experienced an increase of 12.5% for the same period,” said the report which shows general companies received $91,112,393 and life companies, $42,016,222.
As of December 2018, there were 26 registered insurance companies of which one was a composite company conducting both long-term and general insurance business. The total assets of the insurance sector was $385.4 million and this reflected an increase of $27.2 million or 7.6% compared to 2017 when total assets of the sector based on audited financial statements was EC$358.2 million.
The report is prepared by the Grenada Authority for the Regulation of Financial Institutions (GARFIN). Apart from the Insurance Act, the authority is also responsible for administering several other enactments including the Cooperative Act, the Money Service Business Act, the Building Societies and Friendly Societies Act, as well as the Grenada Development Bank.