THE CARIBBEAN insurance industry is being urged to develop innovative products that will provide natural disaster protection for critical sectors such as agriculture and tourism.

Deputy Speaker of the House of Representatives, Lloyd B Smith, made the appeal as he delivered the keynote address at the opening of the 35th annual conference of the Insurance Association of the Caribbean (IAC) held on May 31, at the Hyatt Hotel in Montego Bay, St James.

“We know that there are great risks in agricultural insurance, but there is some work being done on parametric insurance with the help of the multilaterals and Caribbean governments,” he noted.

“I urge you to join forces with them to find a creative solution for even some limited amount of insurance protection that will at least allow farmers to replant,” he said.

Unlike traditional indemnity reinsurance that covers a policyholder’s actual losses, parametric insurance pays out in response to defined triggers such as a natural catastrophe.

Smith is also encouraging the region’s insurers to start looking at investment prospects from the proposed Logistics Hub.

“I urge you to take a closer look at the Logistics Hub and get ready to take advantage of the opportunities it presents. Success in this area will depend, to a large extent, on a series of public-private partnerships with the private sector leading the way and the Government facilitating the process,” said Smith.

Speaking on efforts to establish an International Financial Centre in Jamaica, Smith said that Government is making progress in creating the enabling legal framework for the facility.

“The Jamaica International Financial Services Authority is in place and is making plans to position Jamaica as a niche player in this valuable business area,” Smith said.

He noted that insurance and reinsurance services are among the niche areas identified to be offered when the facility is launched.

Establishment of the International Financial Services Centre is expected to transform the country into an offshore financial hub, similar to jurisdictions such as Bermuda and the British Virgin Islands.

Seven new Bills have already been drafted including: an International Holding Companies Act; a Trust Act; two Partnership Bills; a Limited Liability Companies Act; A Segregated Account Companies Act; and a Trust and Corporate Service Providers Bill.

Meanwhile, insurance industry veteran Dennis Lalor was honoured by the IAC for his contribution to the development of the sector, not only in Jamaica but across the Caribbean.

Lalor was presented with the Lifetime Achievement Award by President and Chief Executive Officer of Sagicor General Insurance in Barbados, David Alleyne.