FSC intensifies scrutiny of outstanding Hurricane Melissa claims

KINGSTON, Jamaica—The Financial Services Commission (FSC) is intensifying its scrutiny of outstanding Hurricane Melissa insurance claims as its latest industry-wide assessment shows that 1,563 claims remained unresolved as at September 30, 2026. This is despite a reported settlement rate of approximately 85 per cent by number. The commission's assessment, based on submissions from insurers across all classes of business, indicates that 10,365 claims were reported, including coinsurance arrangements of which 8,802 have been settled. Insurers reported cumulative payments of $13.29 billion on Jamaican-dollar-denominated claims and US$389.34 million on US-dollar-denominated claims. Outstanding claims reserves amounted to $5.49 billion and US$489.96 million, respectively. The figures are presented separately to reflect the currencies in which the claims were reported. In addition to the progress achieved in settling claims, insurers have reported reserves for outstanding US-dollar-denominated claims that exceed the cumulative payments made in that currency. These outstanding claims are generally more complex and technical in nature, requiring detailed assessment to support their settlement. The reserves represent provisions for anticipated further payments to policyholders, supporting continued recovery and rebuilding efforts. The FSC explained that outstanding claims reserves represent insurers' estimates of their remaining liabilities, which may change as assessments are completed and claims are resolved. The commission also emphasised that the 85 per cent settlement rate relates to the number of claims and should not be interpreted as indicating that 85 per cent of the total monetary value of claims has been paid. Executive Director at the FSC, Lieutenant Keron Burrell, said the commission's attention remains firmly focused on the outstanding claims and the conduct of insurers in bringing them to resolution. "The figures show progress, but they also make clear that important work remains. Our responsibility as regulator is not simply to report how many claims have been settled. It is to examine how the outstanding claims are being managed, understand the reasons for delays and assess whether insurers are meeting their obligations to policyholders. "We recognise that unresolved claims can have serious consequences for households and businesses. We therefore expect insurers to demonstrate that they are actively progressing these matters, communicating clearly with claimants and addressing avoidable delays. Where our supervisory assessment identifies shortcomings, we will consider the appropriate action within our regulatory authority." As part of its continuing oversight, the FSC is examining the status, value and circumstances of outstanding claims, with particular attention to prolonged settlement periods, disputed claims, incomplete assessments and cases in which settlement amounts have been agreed but payment remains outstanding.