SOME Jamaican homeowners are waking up to a rare and welcome surprise—lower insurance premiums.

After years of steady increases tied to global shocks, building costs, and reinsurance volatility, the tide in the insurance market may finally be turning.

So far, it appears that the National Housing Trust (NHT) is one of the first institutions to cut peril insurance rates for mortgagors. A statement obtained by the Jamaica Observer showed that one mortgagor will benefit from roughly a 4 per cent reduction in the peril insurance rate per $1,000 of coverage, effective September 1.

“This has been updated due to a change in your property insurance coverage and a reduction in the peril insurance rate…as set by the Trust’s insurer,” the notice from the State agency read.

While it may only shave a few hundred dollars off a mortgage payment, industry analysts say it signals broader relief for consumers over the coming months.

“Rates going down wouldn’t be a surprise because of the better prospects with regards to the international reinsurance market,” executive director at the Insurance Association of Jamaica (IAJ), Everton McFarlane told
Sunday Finance. “At the same point in time when there are reinsurance rate reductions, some of that benefit will be passed to consumers.”

Peter Levy, a past president and executive director of the IAJ, had made the call recently that the sharp spikes in reinsurance rates may be reversing.

“There have been movements up and down during the period, though people mostly only remember the increases. Recently it’s been up but I do suspect that will change direction, or at least flatten out, as the conditions that led to the increase are changing,” he said at the Jamaica Observer’s exclusive Business Forum recently.

According to Levy, the sharp price surges since 2022 were driven by a contraction in reinsurers’ capital — exacerbated by inflation, weakened bond markets, and fluctuating currencies — which prompted many to scale back or abandon less profitable regions, including the Caribbean. However, he now notes that balance sheets are improving, suggesting a structural pivot in the market.

Levy pointed out that while global reinsurers aren’t “running back to the Caribbean” just yet, they are showing a gradually renewed appetite for the region’s exposure.

“Where there was a fall-off, [they] have now started to show gradual signs of increase,” he said earlier this month.

Wider market data show that insurance rates in the Latin America and Caribbean region have begun to cool. According to Marsh’s Global Insurance Market Index, property insurance rates dropped by 7 per cent in the second quarter of 2025. Meanwhile, cyber insurance declined by 17 per cent, casualty by 1 per cent, and professional lines by 8 per cent.

According to McFarlane, Jamaica’s close ties to global and regional reinsurance markets mean those trends are likely to flow downstream.

“Jamaica is part of the Caribbean region, so if you think about geographical exposure to risk, we’re all exposed to the same kind of threat from hurricanes and natural hazards,” he said. “A lot of the Caribbean companies also do their reinsurance in the same markets — whether it be Lloyd’s in London or large AAA-rated companies in Europe and North America.”

He cautioned, however, that while the current dip is encouraging, it may be part of a larger insurance cycle rather than a permanent shift.

“Rates come back down again as things stabilise over time but I wouldn’t say this is something that moves quarter to quarter — it tends to follow more of an annual cycle,” he explained.

Still, while reinsurers set the tone, newly appointed chairman and CEO of FIRM Insurance Brokers Desmond Johnson reasoned that it’s brokers who often do the legwork to ensure that savings actually reach consumers — especially in markets like Jamaica where policyholders typically rely on institutions or intermediaries to negotiate rates.

“Insurance companies don’t lower rates just because they feel generous. They respond to data — when claims go down and returns improve, rates follow,” Johnson said.

He explained that brokers also play the role of strategists who monitor market conditions and reinsurance cycles in order to time negotiations.

“As brokers, we fight for our clients. FIRM negotiates hard, and we know where the market is softening and how to pass that on — and that may be what you are starting to see now,” he said.

He also pointed out that the ability to extract value hinges on expertise — especially when dealing with large institutional portfolios.

“A broker who understands reinsurance trends and has a strong claims experience portfolio can go to the carrier and push for better terms. That benefit is then passed on to the consumer, whether that’s a corporate client or a mortgagor,” he explained.

Desmond Johnson, Chairman and CEO of Firm Insurance Brokers, says brokers must lead the charge in securing lower premiums for clients as global insurance conditions begin to ease.

Peter Levy, former president of the Insurance Association of Jamaica, says reinsurers are showing renewed interest in the Caribbean, an early signal that the market may be shifting after years of steep premium hikes.

Everton McFarlane, Executive Director of the IAJ cautioned that while the current dip is encouraging, it may be part of a larger insurance cycle rather than a permanent shift.