Industry sources familiar with the discussions say members of the Jamaica Hotel and Tourist Association (JHTA) are considering whether pooling their insurance requirements could secure more favourable terms, strengthen their bargaining power and improve claims settlement procedures.
Contacted by The Gleaner, JHTA President O’Brian Heron declined to discuss details of the initiative but confirmed that the association is surveying members to gauge their interest in such a facility and identify the policy terms that matter most to them.
The proposal remains at an exploratory stage, according to persons briefed on the discussions, with no broker or insurer selected.
The thinking is that pooling members’ risks could give the sector negotiating power that individual properties, particularly small and medium-sized hotels, would struggle to achieve independently.
The initiative follows widespread dissatisfaction with the handling of insurance claims after Hurricane Melissa devastated sections of western Jamaica on October 28, 2025.
In September, the JHTA disclosed that 61 per cent of tourism operators who had submitted claims were still awaiting full settlement.
Only 39 per cent reported that their claims had been fully settled and paid, while seven in 10 said they had experienced deductions beyond what they understood their agreed average-clause provisions to allow.
Approximately one-third reported deductions exceeding 40 per cent of their claim values.
At the time, Heron warned that the delays and reduced settlements were placing considerable financial pressure on tourism businesses, many of which had already used their own resources to repair properties and resume operations.
“Our members did their part. They held cover, declared their exposure and filed in good faith,” Heron said in the association’s September statement.
“The issue is not access to cover. It is cash. Claims are being paid slowly and settled short, and that leaves a working-capital hole across the sector.”
The JHTA subsequently met with the Insurance Association of Jamaica to discuss members’ experiences following the hurricane.
However, industry sources, speaking on condition of anonymity, say the meeting has done little to resolve concerns among operators still awaiting outstanding payments or the conclusion of their claims.
by Janet Silvera
