The government’s removal of value-added tax (VAT) from insurance premiums has not translated into more insurance business, several insurance company executives said yesterday, adding that homeowners also now need to ensure that they are not underinsured.

Managing Director of NUA Insurance Agents & Brokers and Chairman of the Bahamas Insurance Association Warren Rolle added that it is also likely that Bahamians are still economically challenged and therefore have simply opted out of purchasing insurance for their homes despite the risk of hurricanes.

Rolle said the increase in VAT from 7.5 percent to 12 percent last year means home insurance coverage has to reflect the building cost of the home in case of damage. He said claims costs have now increased.

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