Bahamas Insurance Q1 2021

Bahamas Insurance Q1 2021

Key View:

Although the Bahamas' insurance sector is well established and resilient to economic changes, the devastating impact ofHurricane Dorian, compounded by the Covid-19 pandemic, will affect the sector. Insurers had paid out massive property claimsrelated to the hurricane by end March 2020. We believe that their profitability will be affected further by the government'sannouncement of the suspension of premium payments while the emergency order is in place and for 60 days after. The state ofemergency is scheduled to continue until 31 October 2020. It will be difficult to convince policyholders not to lower or cancel theircoverage in light of the economic recession, even going into 2021. We have therefore revised down our forecasts for non-lifepremium growth over the short and medium term.