Organization of American States/USAID
Post Georges Disaster Mitigation (PDGM) Project
Antigua/Barbuda and St. Kitts/Nevis - Banking & Insurance Sectors

Report on the First Roundtable
on Hazard Mitigation in the Banking and Insurance Sectors

Antigua, 18 January 2001

Attendance: The 31 attendees from Antigua/Barbuda and St. Kitts/Nevis, with 19 participants from the banking sector and 12 from the insurance sector.

3 Year Vision (2004) for Sectors' Vulnerability Reduction Roles

The Banking Sector had the vision of 75% of the nations' housing stock having been 'treated' for vulnerability reduction purposes. The treatments would range from basic essentials (straps, clips, shutters etc.) to more substantial measures. They did not offer an estimate for the percentage commercial structures to be covered.

They envisioned no longer lending on structures with inadequate vulnerability reduction protection.

There would exist clear, practical and user friendly vulnerability reduction standards, classifications, and inspection/ enforcement procedures - including laypersons' version of the Building Code.

Pro-active programs would be established to upgrade protection categories of existing loan portfolio properties. The availability of home improvement loans at attractive rates would be energetically promoted.

They expect the insurance sector to have established incentive programs with significant premium savings to certifiably well protected properties - accepting that poorly protected properties would deserve premium surcharges (exposure based rating).

Banks and insurance companies would jointly promote vulnerability reduction information, methods & cost/benefits to all community sectors i.e. beyond their own client bases.

The Insurance Sector foresaw 100% of new policies and 60% of existing policies (renewals) having been 'treated' for vulnerability reduction purposes by 2004.

They aspired to a lower reliance on reinsurance.

They saw the need for a common (anonymous) database for classifying insured properties, to monitor vulnerability reduction progress, and to substantiate portfolio characteristics to reinsurers.

They saw the need to have architects, engineers and construction trades people closely involved with them in the vulnerability reduction effort as well as for all to embrace unified standards for new construction and retrofitting.

They saw the need to start/revive insurance associations in both nations to steer the sector's vulnerability reduction efforts. These should liase closely with the bankers' associations and the Development Control Authority (DCA)

Community-wide public awareness on vulnerability reduction benefits and methods was an essential to be pursued on a persistent basis.

Short Term Vulnerability Reduction Action Plans

These were developed in separate sessions for each sector and then reported on in a combined session. There was general consensus with the exception of the banking group seeing the need to plan on having less reliance on the insurance mechanism; it being perceived currently as too expensive and inflexible. The common planning items were:

1. Upgrading Public Awareness on Vulnerability Reduction cost/benefits, methods and procedures.

2. Effective Dissemination, Application, and Enforcement of Building Codes, including:

3. Establish Effective Cooperation - Bankers/Insurers/Construction Professionals & Trades people.

Time did not permit slotting these goals into precise short/mid/long time frames but there was enthusiasm to address them concurrently without delay.

The insurers warned that reinsurers' support would be unlikely for any vulnerability reduction approaches that they perceive as reducing reinsurance income levels. Reinsurers allege that considerable payback is due them to repay outlays from prior storms. The opinion was expressed that reinsurers' continued acceptance of Leeward Island business is tenuous.

Organization and Structure

The insurance trade associations in both Antigua and St. Kitts would be re-vitalized to become the steering mechanisms for follow up on the Roundtable findings. The two banking trade associations would serve similar functions with close cooperation with the insurance associations. The pro-tem leaders of the roundtable breakout sessions would undertake interim liaison and keep in contact with Rosemary Georges (OAS coordinator) for setting up the second roundtable.

Second Roundtable

It was agreed to propose April 4 or 5 2001 for the next roundtable and Arthur Evans (OAS facilitator) would shortly send Rosemary Georges a draft agenda for circulation to attendees.

Press Release

A simple press release on the roundtable was distributed and Arthur Evans had a 10-minute interview with the Antigua Sun.

Attendees' Ratings of Roundtable

On the basis of 1 = Poor, and 5 = Good, the average ratings were:


USAID/OAS Post-Georges Disaster Mitigation: http://www.oas.org/pgdm

Page last updated on 23 Jan 2001