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Jamaica Insurance Industry – Key Trends and Opportunities to 2025

The total gross written premium of insurance market in Jamaica was valued at $889.1 million in 2020. The market is projected to grow at a CAGR of more than 5% during the period 2021-2025. The Jamaican insurance industry GWP is expected to decline in 2020 primarily due to the outbreak of the COVID-19 pandemic, as well as related restrictive measures taken to mitigate the risks of spreading the disease.

In 2020, in insurance market in Jamaica, life insurance was the largest segment followed by general insurance. Life insurance segment accounted for more than 50% of the total insurance. Motor insurance was the largest segment in general insurance. The penetration of life insurance in the country was estimated to be low, at just 3.6%. There were six life insurers and seven group insurance providers in the country as of December 2020, according to the IAJ.

Overview of insurance market in Jamaica

Overview of insurance market in Jamaica

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What are the market dynamics in Insurance market in Jamaica?

In August 2020, the government increased the deposit insurance coverage limit under ‘Deposit Insurance Act’ due to the outbreak of the COVID-19 pandemic. The maximum payout limits to depositors under ‘Deposit Insurance Act’ was increased from JMD600,000.0 ($4,505.2) to JMD1.2 million ($9,010.4). The increased limit came into effect from August 31, 2020. In December 2020, the government launched a compulsory travel insurance program for visitors.

Parametric Insurance:

Jamaica has been prone to numerous specific natural hazards, such as hurricanes, earthquakes, floods and landslides. Jamaica has been part of the Caribbean Catastrophe Risk Insurance Facility (CCRIF) since 2007, offering parametric insurance policies for tropical cyclones, earthquakes, excess rainfall and the fisheries sector. The agricultural sector in the country has been estimated to suffer losses of $12.0 million to $15.0 million annually and requires a mechanism to protect investments in the sector and promote economic growth. One of the solutions could be to include a form of parametric insurance.

Telemedicine:

The COVID-19 outbreak has led to a huge demand for the telemedicine market in the country. The segment is expected to grow exponentially on the back of a rise in the advent of digitalization. In 2018, the pilot project on telemedicine was launched by the government, which was mainly used to benefit the population in remote areas with mobility issues. However, the outbreak of the COVID-19 pandemic led to an increase in telemedicine’s usage in Jamaica.

Microinsurance:

With few initiatives to provide insurance to low-income segments of the population and no regulation in place, the Jamaican microinsurance market is in a nascent stage, and is gradually gaining prominence with the announcement of government measures regarding microinsurance cover for risks related to climate change in the country.

Digitalization:

Digitalization in Jamaica has shown immense growth in recent years, as the insurance companies, along with the regulator, have been taking productive steps towards digital transformation in the sector. To enhance and increase the sales amid the social restrictions caused by the COVID-19 pandemic, insurance companies such as BCIC and GK Insurance have shifted their operations towards digital channels by creating an online portal for its policyholders for purchasing, payments and claims filing.

Telematics:

The telematics system helped insurers in the country to identify drivers with bad driving behaviors, and to educate them on their speed limits with a detailed report. Therefore, in February 2020, the BCIC launched a smart vehicle tracker powered by Amber Connect to track the driving habits of private car policyholders. In addition, the insurer will have access to the data, and will utilize the relevant information to create innovative products.

Cyberinsurance:

Jamaica has witnessed a significant increase in ransomware in recent years. One major ransomware attack was reported by the Jamaica National Group in March 2020, where the data of some members and customers were stolen. Insurance companies have started providing cyberinsurance products. For instance, GK Insurance launched a cyberinsurance product in June 2019 to assist businesses and individuals with recovery after cyber-attacks.

Reinsurance:

General insurers consistently ceded more than 50% of GWP to reinsurers during the review period, indicating a strong reliance on reinsurance to mitigate risks. Due to high volume of premiums ceded to reinsurance in the Jamaican insurance sector, and its high exposure to natural catastrophes, the reinsurance sector is expected to experience rising costs.

Insurtech:

The Jamaican insurtech industry is still at a nascent stage in the country. Insurtech startups are becoming more customer-centric to facilitate the sales of their products. Insurtech startups are digitalizing services to insurers and intermediaries to improve the value chain of insurers during the pandemic. The pandemic strengthened growth of digital channels for distribution and service delivery. In 2020, many insurers adopted digital channels for distribution, customer support and claim managements, with an increase in social restrictions due to the global pandemic crisis.

What are the segment classifications in Jamaica’s insurance market?

In 2020, general insurance accounted for the highest share in the Jamaica’s insurance market.

General insurance:        

In general insurance segment, various lines of business include motor insurance, property insurance, liability insurance and miscellaneous insurance. Among the lines of business, motor insurance is expected to project the most stable growth during the forecast period followed by property insurance. The liability insurance segment’s GWP was estimated to decline in 2020 due to lockdown restrictions and a reduction in the number of working hours, as workmen’s compensation is estimated to constitute 27.2% of the liability insurance GWP.

Life insurance:

The life insurance segment in Jamaica include life personal accident and health insurance (PA&H). The segment has hugely invested in advertising campaigns and digitalization to increase the product awareness and tap the general population in the market. Claims paid by life insurers are expected to record a growth of 8.0%, increasing from JMD44,798.4 million ($336.0 million) in 2019 to JMD48,395.1 million ($340.0 million) in 2020.

Insurance market in Jamaica, by Segment

Insurance market in Jamaica, by Segment

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Who are the major market players in insurance market in Jamaica?

In 2020, Guardian Life Limited was the leading market player in the Jamaica life insurance market followed by CUNA Caribbean Insurance Jamaica Limited, Scotia Jamaica Life Insurance Company Limited, Canopy Insurance Limited and JN Life Insurance Company Limited. In 2020, British Caribbean Insurance Company Limited was the leading market player in the general insurance market in Jamaica followed by Guardian General Insurance Jamaica Limited, GK General Insurance Company Limited, The Insurance Company of the West Indies Limited and Advantage General Insurance Company Limited.

Life insurance market in Jamaica, by key players

Life insurance market in Jamaica, by key players

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Market report scope

Market size (Year – 2020) -Insurance $889.1 million (Gross Written Premiums)
Growth rate – Insurance CAGR of more than 5% from 2021 to 2025
Base year for estimation 2020
Market Segments Life Insurance, General Insurance
Forecast period 2021-2025
Key players Guardian Life Limited, CUNA Caribbean Insurance Jamaica Limited, Scotia Jamaica Life Insurance Company Limited, Canopy Insurance Limited, JN Life Insurance Company Limited, British Caribbean Insurance Company Limited, Guardian General Insurance Jamaica Limited, GK General Insurance Company Limited, The Insurance Company of the West Indies Limited and Advantage General Insurance Company Limited

This report provides a comprehensive analysis of the insurance segment in Jamaica.

  • Provides historical values for Jamaica’s insurance segment for the report’s 2016-2020 review period, and projected figures for the 2021-2025 forecast period.
  • Offers a detailed analysis of the key categories in Jamaica’s insurance segment, and market forecasts to 2025.
  • Profiles the top life insurance companies in Jamaica and outlines the key regulations affecting them.

Reasons to Buy

  • Make strategic business decisions using in-depth historic and forecast market data related to Jamaica’s insurance segment, and each category within it.
  • Understand the demand-side dynamics, key market trends and growth opportunities in Jamaica’s insurance segment.
  • Assess the competitive dynamics in the Jamaican insurance segment.
  • Identify growth opportunities and market dynamics in key product categories.

Key Players

Guardian Life Limited

CUNA Caribbean Insurance Jamaica Limited

Scotia Jamaica Life Insurance Company Limited

Canopy Insurance Limited

JN Life Insurance Company Limited

British Caribbean Insurance Company Limited

Guardian General Insurance Jamaica Limited

GK General Insurance Company Limited

The Insurance Company of the West Indies Limited

Advantage General Insurance Company Limited

JN General Insurance Company Limited

Key Insurance Company Limited

IronRock Insurance Company Limited

Table of Contents

Table of Contents

Executive Summary

Economy Overview

Regulatory and Compliance

Key Market Trends

Life Insurance Overview

Penetration and Growth

Premium Trends

General Insurance Overview

Penetration and Growth

Premiums and Profitability

Key Trends by Lines of Business

Competitive Landscape

Insurance Industry – Market Share and Concentration

Competitors Profiles

Reinsurance

Reinsurance Market Overview

Reinsurance Ceded Premiums

Regulatory and Compliance

Insurtech

Appendix

Frequently Asked Questions

The total gross written premium of insurance market in Jamaica was valued at $889.1 million in 2020.

The insurance market in Jamaica is projected to grow at a CAGR of more than 5% during the period 2021-2025.

Key segments in Jamaica’s insurance market includes life insurance and general insurance.

In 2020, Guardian Life Limited was the leading market player in the Jamaica Life insurance market followed by CUNA Caribbean Insurance Jamaica Limited, Scotia Jamaica Life Insurance Company Limited, Canopy Insurance Limited and JN Life Insurance Company Limited.

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