CBCS: Property claims settlement lowest of all | THE DAILY HERALD

PHILIPSBURG–The most recent insurance statistics have revealed that claims settlement for properties is the lowest, standing at 65 per cent of approximately 8,200 reported claims, according to the Central Bank of Curaçao and St. Maarten (CBCS).

There is an average claims settlement percentage of 70, with motor vehicle claims accounting for the highest percentage (92 per cent).

Considering the important role of the insurance sector in the recovery of St. Maarten, CBCS put insurance companies on a monthly reporting basis shortly after the passing of Hurricanes Irma and Maria. Information about reported, outstanding and settled claims must be submitted to CBCS periodically.

To complement the monthly reporting, CBCS has conducted visits to insurance companies. The major findings from these visits revealed concerns about insufficient insurance coverage by clients because of high catastrophe-insurance premiums, underinsurance of properties and clients’ ignorance about its consequence, and limited number of loss adjusters in St. Maarten.

Also on the list of concerns was scarcity of building materials, scarcity of contractors impeding the timely submission of rebuilding-cost estimates and resulting in increased rebuilding cost, clients’ usage of insurance funds received to satisfy other needs, and increased insurance and reinsurance premiums.

CBCS said the issue of underinsurance has its major attention, considering its impact on the client’s financial condition, and guidelines are being developed in this area. CBCS held meetings with organisations representing insurance companies and brokers in Curaçao and St. Maarten during which this particular issue received major attention.

Awaiting these new guidelines, CBCS encourages clients and prospective clients to address this issue proactively with their insurance broker and insurance company when taking out insurance coverage. Clients are advised to ask questions about their insurance policy conditions and demand proper explanation about the eventual consequences of their choice.

CBCS welcomes any complaints from clients in respect to services received from a particular financial services provider. CBCS is keeping statistics about all complaints received, as these provide relevant information about a financial institution’s behaviour towards its clients.

CBCS has received eight complaints in respect to Hurricanes Irma and Maria thus far. It has given all these complaints due attention and measures were taken where deemed necessary. As CBCS is legally bound to secrecy, details of actions and measures taken with respect to supervised entities cannot be disclosed.

The CBCS office is at Walter Nisbeth Road 25. Clients of financial institutions are welcome to visit the CBCS if they have concerns or questions, or if any assistance is needed with filing complaints. Office visiting hours are Monday and Wednesday from 9:00am to 12:00pm.

Questions and concerns can also be addressed via email to d.president@centralbank.sx or
info@centralbank.cw . Complaint forms are also available on the CBCS’ website http://centralbank.sx/conduct-supervision .

Source: The Daily Herald https://www.thedailyherald.sx/islands/77909-cbcs-property-claims-settlement-lowest-of-all