A significant dispute has emerged between Barbados’s insurance sector and its financial regulator regarding the root causes of uninsured vehicles on the island. The General Insurance Association of Barbados (GIAB) has publicly refuted claims made by Financial Services Commission (FSC) CEO Warrick Ward, who attributed the problem to premium affordability and structural market weaknesses. Instead, the GIAB identifies recent modifications to the vehicle registration framework as the primary catalyst.
In a formal statement, the industry body expressed strong disagreement with the regulator’s characterization of the market. The GIAB emphasized the financial robustness of its member companies, several of which maintain AM Best ratings—a global benchmark for assessing insurers’ financial strength and claims-paying capability. The association challenged the notion that insurance premiums are prohibitively expensive, noting that rates have not kept pace with inflation over the past decade and a half.
The core of the GIAB’s argument centers on a digital modernization initiative launched in March 2025. This new system, introduced by the Barbados Revenue Authority in collaboration with several agencies, allows vehicle owners to renew registrations online. A critical change involved removing the mandatory requirement to present proof of insurance before paying road tax, shifting the burden of compliance solely onto vehicle owners. The GIAB contends this procedural alteration, rather than affordability, explains the prevalence of uninsured vehicles.
Official police data estimates that approximately 50,000 of the island’s 180,000 vehicles are either uninsured or untaxed, a situation industry executives say contributes to three out of every ten accidents involving uninsured drivers or unlicensed motorists.
While FSC CEO Ward acknowledged the scale of the problem and pointed to financial inclusion challenges, reinsurance costs, and low insurance penetration as contributing factors, he clarified that enforcement falls under the police’s purview, not the FSC’s regulatory mandate.
The GIAB concluded by asserting that its members employ risk-based pricing models and exercise due diligence before implementing any premium increases. The association has formally requested a meeting with the FSC to discuss the regulator’s concerns directly.