The Jamaica Financial Services Commission issued an advisory on insurance claims arising from Hurricane Melissa, citing reports and concerns about insurers' responsiveness and reminding the market that catastrophe-related pressures do not reduce insurers' obligations to handle claims fairly, transparently and in a timely manner under policy terms and Jamaica's insurance framework. Policyholders should receive clear information on claim status, documentation or access needed for assessment, material developments in processing, and reasons for any delay or adjustment. As part of an enhanced supervisory response, the commission has requested detailed Hurricane Melissa claims data from licensed general insurers, begun intensified engagement with the general insurance industry on claims management practices, service pressures and emerging issues, strengthened its monitoring and handling of related complaints, and started a focused review of issues arising from the use of the average clause in underinsurance cases. It expects licensed general insurers and insurance brokers to maintain accessible and responsive claims-handling arrangements. Brokers are expected to help clients understand the claims process and policy conditions and support communication with insurers, while policyholders should report losses promptly, provide reasonably requested information, retain records and photographs where available, allow access for assessment, and take reasonable steps to prevent further loss. The commission said unresolved complaints should first be raised through the complaints process of the insurer or broker, after which the FSC may consider the matter as part of its supervisory review and take action where warranted. It will continue monitoring developments, incorporate lessons from Hurricane Melissa into regulatory, supervisory, consumer protection and public education measures, and provide further updates as its review progresses.
Jamaica Financial Services Commission2026-06-29
Jamaica Financial Services Commission intensifies oversight of Hurricane Melissa insurance claims and reviews average clause use
The Jamaica Financial Services Commission issued an advisory on Hurricane Melissa claims after reports of weak insurer responsiveness, reminding firms that valid claims must be handled fairly, transparently and without avoidable delay. It has requested detailed claims data from licensed general insurers, intensified supervisory engagement and complaint monitoring, and begun a review of how the average clause is being applied in underinsurance cases. Insurers and brokers are expected to keep claims handling accessible and responsive, with further updates to follow as the review progresses.