The Caribbean: Enabling Policy Environment
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Government institutions provide support to develop the market for innovative extreme weather insurance and adopt the regulatory and institutional frameworks so that these kinds of insurance products can be promoted.
Challenges related to this objective are:
- Lack of an effective regulatory environment for establishing products as parametric index insurance exists in the region; the current Insurance Acts in the target countries do not address weather-based index insurance.
- Previous market failures in the Caribbean have resulted in extra vigilance and caution being exercised by the regulatory authorities.
- The insurance regulations do not provide for specific agents for microinsurance (within the Partner-Agent model paradigm), which limits the role of the distribution channel (Agents) vis-a-vis client education, marketing and product delivery