J.S. Johnson paid out 75 percent of its claims during the three months following the passage of Hurricane Matthew across The Bahamas, the company's senior manager, Charles Johnson, said recently.
Speaking to the media at a press conference for the Royal Fidelity Bahamas Economic Outlook, Johnson said the company would have shelled out close to $60 million in hurricane claims when all of its cases have been completed. The total throughout the entire industry is thought to be around $500 million.
"Claims processing and settlement was progressing fairly well at the end of the year," he said.
"While we are trying to close our claim reporting, we are still open to accept claims."
The insurance company has recently opened claims for second home owners, many of whom only discovered damage to their residences when they came down for their annual winter holidays.
One of the main concerns of Bahamians following the passage of Hurricane Matthew was the worry of having to present a deductible in order to complete an insurance claim. However, Johnson said insurance customers typically do not know that the deductible is simply adjusted from the total of the claim. This, he said, keeps insurance premiums affordable.
"The deductible always presents a challenge for our clients, but of course we explain to them that catastrophe loss carries a two-percent deductible, and that is two percent of the insured value," he said.
"If we had to pay the first dollar value on a hurricane claim, the cost of your insurance would be much higher. By taking a deductible, we can charge a slightly better price for the insurance on an ongoing basis."
He added that his company has handled between 2,000 and 3,000 claims, which required it to bring in foreign adjusters to investigate the claims. He said this is a normal practice in the industry.
According to Johnson, Hurricane Matthew was one of the largest hurricanes, in terms of losses, that the insurance industry has seen in many years in The Bahamas, but said the "industry was well-prepared to deal with and respond to the losses".
He does not foresee a rise in insurance premiums due to the high payouts, though he did say: "Rates are driven by reinsurance, and when they are in a position to assess their losses, it will be determined if there are any rate increases."
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