Core Insights - The article discusses the potential for insurance to drive economic growth and resilience in Jamaica and the Caribbean, drawing on findings from a Prudential/PwC study on ASEAN economies [3][4][18] Group 1: Economic Impact of Insurance - The Prudential/PwC study suggests that a 50% increase in insurance coverage across six major ASEAN economies could lead to a per capita GDP growth of over 4% by 2050 [3][10] - Life insurance growth could raise per capita GDP by 5.1%, while broader insurance uptake could add 4.4% to total GDP [11] - The study highlights that insurance can create safety nets and foster economic growth, which is particularly relevant for regions like the Caribbean facing climate change challenges [4][12] Group 2: Relevance to Jamaica - Jamaica's low insurance penetration presents significant growth opportunities, as many households and businesses lack adequate coverage [13] - The island's vulnerability to climate shocks necessitates urgent insurance coverage, as risks are concentrated rather than spread across diverse populations [14] - Insurance is identified as a development enabler, allowing farmers to invest in better resources and helping SMEs manage disruptions [15][16] Group 3: Policy Recommendations - Policymakers should view insurance as a critical component of economic growth strategy rather than a mere expense [17] - To increase insurance uptake, tax incentives, regulatory reforms, and public-private partnerships are essential [17] - Innovations in insurance products, such as microinsurance and digital distribution, are necessary to reach currently excluded populations [17]
Cedric Stephens | A new conversation on insurance