Carib Scope

分类： business

  • LUCELEC unable to shield consumers from full impact of oil price surge

    LUCELEC unable to shield consumers from full impact of oil price surge

    Escalating geopolitical instability across global markets has sent international oil prices soaring, and that upward pressure is now rippling through to household electricity bills in the Caribbean island nation of Saint Lucia. State-owned electricity provider LUCELEC has publicly warned that its capacity to absorb the shock of rising fuel costs for consumers is constrained, despite existing risk-mitigation measures in place.

    In a recent video address to the public, LUCELEC Managing Director Gilroy Pultie broke down how the global oil spike is hitting the utility’s operations. The company has long relied on a fuel hedging program designed to smooth out volatile cost swings, a common risk management tool that allows energy providers to lock in advance pricing for a portion of their fuel inventory. This strategy works well to protect consumers from sudden, sharp price jumps in international oil markets — but it only covers a share of the company’s total fuel needs, Pultie explained. The remaining volume of fuel must be purchased at current, inflated international market rates, leaving customers on the hook for any unexpected price increases.

    “When global oil prices rise sharply, as we are now seeing, it affects the fuel surcharge and what customers pay on a month-to-month basis,” Pultie said, identifying ongoing conflicts, most notably in the Middle East, as the primary catalyst for the current market volatility driving up costs. The impact of these increases is already tangible for Saint Lucian households: this month, the fuel surcharge added to every unit of electricity has jumped to EC$0.255, a dramatic surge from just EC$0.007 per unit recorded back in March.

    Pultie noted that market conditions before the latest round of geopolitical escalation did not align with LUCELEC’s internal criteria for expanding hedging coverage, leaving the utility unable to lock in lower prices for a larger share of its fuel stock ahead of the current surge. This missed opportunity has directly limited the company’s ability to offset the skyrocketing oil prices hitting the open market today.

    Recognizing electricity as a foundational essential service for all residents, Pultie acknowledged that the sudden spike in monthly bills places significant financial strain on households, particularly those already operating on tight budgets. While he emphasized that global oil market dynamics are completely outside of LUCELEC’s control, he confirmed that the utility is prioritizing operational efficiency to keep unnecessary costs down, while maintaining transparent, ongoing communication with consumers about price changes.

    “We understand the pressure that higher prices can place on customers,” Pultie said, reiterating the company’s commitment to transparency throughout this period of market volatility. Looking forward, LUCELEC is already conducting a full review of its current hedging strategy, with the explicit goal of increasing the share of fuel purchased at locked-in, stable prices to better shield consumers from future market shocks, even amid the ongoing challenges posed by today’s tense geopolitical and economic landscape.

  • SSB Consults Public on Proposed Contribution Changes

    SSB Consults Public on Proposed Contribution Changes

    Nearly four and a half decades after Belize’s social security system was first established, the Social Security Board (SSB) is moving forward with sweeping proposed updates to the program’s contribution structure, and is gathering public input through a months-long series of national consultations. The most recent consultation session was hosted on the afternoon of April 16, 2026 at the Grand Resort and Residences in Belize City, marking one stop on a 12-meeting tour that has already brought discussions from the northern district of Corozal all the way south to Dangriga. The full consultation process is scheduled to conclude at the end of April, with three remaining public sessions planned for San Pedro on April 21, Punta Gorda on April 28, and Placencia on April 30.

    At the core of the discussions are three key proposed revisions to the current contribution framework: updating the methodology used to calculate worker and employer contributions, adjusting the division of contribution responsibilities between employees and employers, and revisiting the minimum and maximum wage thresholds that determine how much contributors pay into the system. SSB Chief Executive Officer Jerome Palma emphasized that the reform effort comes as the 1981-originated framework has become outdated to match 2026’s economic and labor landscape. “A scheme that was developed in 1981, for a time and a condition that was appropriate in 1981, may need some reform in 2026 and moving forward,” Palma stated during the meeting. “In 1981, there were no call centres. The investment market was distinctly different. Technology has moved forward.”

    One of the most pressing indicators of the current system’s obsolescence is the existing maximum weekly contribution cap of BZ$520, which Palma confirmed 25 to 30 percent of all contributors already reach annually. This figure signals that the cap has not been adjusted to keep pace with wage growth across Belize, leaving the system with uncollected revenue that could support long-term program stability.

    Throughout the Belize City consultation, participants raised a range of targeted concerns and feedback to inform the board’s final policy decision. One attendee pushed back against the current practice of calculating contributions based on gross rather than net salary, pointing out that mandatory income taxes and other pre-paycheck deductions often reduce take-home pay by as much as 50 percent. “We don’t live on our gross salary,” the participant said. “By the time I actually get money in my pocket, it’s half of what it says on the payslip… When you are considering the split, please consider how heavily taxed we are.”

    Another participant focused on equity for low-wage workers, highlighting disproportionate gaps between contribution bands across different income levels and calling for transparent, fair adjustments that do not place undue burden on lower-income contributors while neglecting higher earnings brackets. “That’s a big jump for workers at the lower end,” the participant said. “You have to be fair and transparent. You can’t look at the lower bands and not look at the higher bands.”

    Palma responded directly to these concerns, reassuring attendees that the board has prioritized protecting the roughly 6,000 contributors currently in the lowest income band. He confirmed that the board intends to retain the existing split of contribution responsibilities, which requires employers to cover a higher share of contributions than employees, with this structure remaining especially intact for lower-wage bands. “It’s very important for us to have this split very similar to what it is at the moment, where the employer actually pays and contributes at a higher rate than the employee, especially at the lower bands,” he explained.

  • Hotels boost disaster readiness as BHTA urges full preparedness

    Hotels boost disaster readiness as BHTA urges full preparedness

    Barbados’ tourism and hospitality industry has made major strides in strengthening disaster and emergency preparedness, with nearly all member properties of the Barbados Hotel and Tourism Association (BHTA) now holding formal crisis management plans, according to new data shared at the association’s 2026 Emergency Management Workshop held at Crane Resort in St Philip.

    Javon Griffith, chairman of the BHTA, opened the workshop by emphasizing that comprehensive crisis readiness is far more than a bureaucratic requirement — it is a core commitment to protecting guests, employees, and critical industry assets. The Caribbean island’s tourism sector, which serves as a backbone of the national economy, faces constant exposure to unforeseen hazards, from intense hurricanes and extreme weather events to public health threats, operational disruptions, and labor challenges. Griffith argued that when crisis hits, pre-planning, clear leadership, and structured processes matter far more than last-minute improvisation or panicked reactions.

    New data presented by BHTA Tourism Liaison Officer Sade Deane quantified the sector’s progress. Currently, 93% of BHTA-member tourist accommodations and hotels maintain fully developed emergency management plans, with 80% of these documents updated annually to reflect changing risks and operational conditions. During peak hurricane season, BHTA members collectively account for up to 10,000 guests that require coordinated safety planning, making standardized preparedness a high-stakes priority.

    Ninety percent of surveyed properties have formal evacuation protocols in place and maintain dedicated emergency committees trained to respond to different types of crises, most commonly hurricanes, wildfires, and flooding. Sixty-seven percent of properties conduct regular, rigorous emergency drills to ensure all staff understand their roles during a crisis, alongside ongoing training and tabletop simulation exercises for shelter operations. Most properties have pre-arranged agreements to use sister hotels as alternate shelters if on-site capacity is exceeded, with 89% of staff able to quickly direct guests to these nearby safe locations.

    When hurricane forecasts predict severe storm activity, properties prioritize guest welfare by encouraging pre-storm evacuation off-island. To reduce risk for visitors who choose to or must remain on Barbados, hotels offer flexible booking policies including rescheduling and extended stays, and provide emergency support including stocked meals and essential supplies. Sixty-eight percent of BHTA members have formal mutual aid agreements with non-member accommodations to host displaced guests if local capacity is overwhelmed during a major event.

    Deane outlined the range of standard protective and response measures deployed across the sector, including pre-storm preparation steps such as placing sandbags, clearing drainage systems, securing outdoor furniture and equipment, and stocking up on non-perishable food, water, and critical backup infrastructure including water tanks and power generators. For communication, properties maintain multi-layered systems that work even if traditional cell and internet networks go down, combining social media updates, WhatsApp groups, mobile calls, internal radio systems and island-wide VHF radio coverage to maintain connectivity during crises.

    Despite the notable progress captured in the new data, Griffith stressed that emergency management must evolve beyond simply having a written plan stored on a shelf. He argued that for true resilience, crisis preparedness must be embedded into the daily organizational culture of every hospitality business, understood by senior leadership, embraced by frontline teams, and continuously strengthened through regular planning, training, rehearsals, and post-incident reviews.

    Griffith added that true resilience depends as much on people as it does on infrastructure and formal systems. Emergency preparedness, he noted, is not the sole responsibility of a single department — it requires buy-in and participation across every level of an organization, and across the entire tourism industry. As the leading economic sector in Barbados, the tourism industry holds a collective responsibility as stewards of local jobs, representatives of the island’s national hospitality brand, and guardians of the visitor experience. The preparations, response actions, and recovery efforts the sector undertakes have impacts that stretch far beyond individual hotel businesses, affecting the entire island’s reputation and economic health.

    The 2026 workshop was designed to address both the operational and human elements of emergency management, covering not just infrastructure and protocol planning, but also how to prepare staff for crisis, support workers during disruptions, maintain fair workplace practices under extreme pressure, and support teams and organizations to recover fully after a crisis passes.

  • Thirty participants begin intensive tour guide training to boost Dominica’s tourism standards

    Thirty participants begin intensive tour guide training to boost Dominica’s tourism standards

    Thirty aspiring and current tour guides in Dominica have begun a specialized workforce development program, launched to lift service quality across the Caribbean island nation’s booming tourism sector. The fully funded initiative is a collaborative effort led by the Discover Dominica Authority, in partnership with the Ministry of Tourism, the Organization of Eastern Caribbean States (OECS), and Dominica State College, according to an official press statement from the tourism authority.

    Running from April 13 to 21, 2026, the training program receives financial backing from the Caribbean Development Bank, allocated through the bank’s Eastern Caribbean Sustainable Marine and Terrestrial Ecosystems (EC-STEMS) Project. Officials frame the initiative as a core part of a national strategy to build the capacity and professionalism of Dominica’s tourism labor pool, as the country works to strengthen its reputation as a top nature-focused travel destination.

    All participants in the program are working toward official certification under the Nature Island Standards of Excellence (NISE), a local quality designation that requires completion of this standardized training. The curriculum is structured around four core pillars critical to exceptional visitor experiences: cultural interpretation, which teaches guides to share the unique history and traditions of Dominica with guests; environmental responsibility, aligned with the island’s focus on sustainable eco-tourism; customer relationship management; and comprehensive safety protocols.

    Unlike many traditional training programs that rely solely on classroom learning, this course blends academic instruction with immersive on-the-ground fieldwork. Trainees get the opportunity to apply their new knowledge directly in real tourism settings, allowing them to refine their skills before they begin leading tours independently. This hands-on approach is designed to ensure that program graduates are fully prepared to adapt to the changing needs of modern travelers and the shifting dynamics of the global tourism industry.

    Marva Williams, CEO and Director of Tourism at the Discover Dominica Authority, emphasized that uniform high service standards are non-negotiable as Dominica works to grow its market share in an increasingly competitive global tourism landscape. “Programs like this ensure that the people delivering the experience are prepared, confident and aligned with the level of quality we expect across the sector,” Williams said in an official statement.

    Once participants complete the 9-day training course, they will be eligible to move forward with their full NISE certification. Officials project that the expanded pool of certified, highly trained tour guides will help deliver a more consistent, premium tourism experience across Dominica, supporting long-term growth and visitor satisfaction for the island’s key economic sector.

  • Central Bank breaking collateral barrier for MSMEs

    Central Bank breaking collateral barrier for MSMEs

    Micro, small and medium-sized enterprises (MSMEs) across Barbados are set to gain unprecedented access to critical capital, after the Central Bank of Barbados officially launched the Enhanced Credit Guarantee Fund (ECGF) – a risk-sharing initiative designed to break down long-standing barriers to business financing.

    The formal announcement was delivered Wednesday by Darrin Downes, Director of Foreign Exchange and Fund Management at the Central Bank, during the annual State of the Sector conference hosted at the Lloyd Erskine Sandiford Centre. The program directly addresses a well-documented structural gap in Barbados’ small business economy: a 2024 study led by University of the West Indies management scholar Professor Dwayne Devonish found that the majority of local MSMEs are locked out of commercial lending simply because they lack the traditional collateral that banks require to approve loans.

    Rather than issuing loans directly to businesses, the ECGF operates as a partial guarantee scheme administered by the Central Bank. Under the model, the fund shares a large portion of the default risk with commercial financial institutions, shifting the sector’s historic approach to small business lending from risk aversion to collaborative risk sharing. This reduction in lender risk is intended to encourage banks to approve credit for viable MSME projects that would otherwise be rejected due to insufficient collateral.

    Capital accessed through the ECGF can be allocated to a wide range of productive business uses, including purchasing new equipment, acquiring commercial property, expanding operational infrastructure, and upgrading digital technology. To clear up common public misconceptions about the program, Downes emphasized that the Central Bank does not evaluate loan applications or issue funds directly to borrowers. All application and underwriting processes remain in the hands of commercial banks, where existing customers can discuss their eligibility and loan needs with their account managers.

    The program has clear eligibility requirements designed to target formally operating legitimate MSMEs. To qualify, businesses must be incorporated entities holding all required operating licenses and permits to conduct business in Barbados. Currently, around 45 percent of Barbados’ micro-enterprises meet the incorporation requirement, making them immediately eligible to access the program via their financial institution. Additional caps on size limit participation to businesses with no more than $20 million in annual assets and revenue, and fewer than 200 full-time employees.

    To streamline processing, the entire application workflow is digital, managed through a custom Central Bank platform called CBD Flows. After a commercial bank collects all required documentation from the applicant, the bank submits the request electronically through the portal. The Central Bank reviews the submission and issues a formal decision to the bank within seven business days, creating a fast turnaround for participating businesses.

    Loan sizes under the program start at just $20,000, with total cumulative support per business capped at $6 million. The fund guarantees up to 80 percent of an outstanding loan balance, with a maximum guarantee of $2 million per individual loan. Guarantees have a 10-year tenure, and a 0.7 percent fee is charged on outstanding guaranteed balances, covered by the participating financial institution. Crucially, the program only applies to new loans, not existing outstanding debt.

    Rules are in place to preserve the long-term sustainability of the fund. If a borrower defaults on a loan and the bank submits a successful guarantee claim, the borrowing business becomes permanently ineligible for future support through the ECGF. In the event of default, the Central Bank pays out 100 percent of the guaranteed portion of the loan immediately, and the commercial bank retains responsibility for recovering the remaining 20 percent of the outstanding balance through its standard debt recovery processes.

    The initiative marks a major policy shift to support Barbados’ MSME sector, which forms the backbone of the local economy, addressing one of the most commonly cited barriers to small business growth and job creation across the country.

  • Big Break for Small Businesses

    Big Break for Small Businesses

    Belizean micro, small, and medium-sized enterprises (MSMEs) are celebrating a major policy win, with more than 800 businesses across the country gaining formal approval for the government’s landmark MSME Tax Amnesty Programme, national authorities confirmed in an announcement made public on April 16, 2026.

    The initiative, designed to formalize informal economic activity and boost nationwide tax compliance, drew 909 total applications from entrepreneurs and business owners across all districts of Belize. Of these submissions, 806 MSMEs met the programme’s eligibility requirements to unlock its full benefits. Successful applicants will receive a full 12-month exemption from standard business tax, alongside a complete waiver of all accumulated penalties and interest attached to their outstanding historical tax obligations.

    Geographically, participation was concentrated in three of Belize’s most economically active districts: Cayo, Belize District, and Stann Creek. Combined, these three regions accounted for roughly 65% of all total applications submitted to the programme. The remaining 35% of submissions came from business owners operating in the northern districts of Orange Walk and Corozal, as well as the southern district of Toledo.

    When broken down by economic sector, the data reflects Belize’s identity as a service-driven economy. Retail trade claimed the largest single share of applicants, making up 25.6% of all submissions. Food and beverage services followed as the second-largest participating sector at 20.2%. Other high-participation sectors include personal services, tourism and recreation, and accommodation and hospitality—all core pillars of Belize’s domestic and international-facing economy.

    Programme officials outlined that the long-term objectives of the tax amnesty extend beyond immediate tax relief for struggling small businesses. By encouraging formal registration with the Belize Tax Service and improving overall compliance, the government aims to help these small businesses unlock new opportunities: access to formal business financing, government grants, and entry to larger regional and international markets that require formal operating status.

    To qualify for the programme, businesses must fall into one of the three MSME categories (micro, small, or medium) by meeting at least two out of three standard classification metrics: total number of employees, annual sales revenue, and total business asset value. The initiative does exclude a handful of specific sectors, however, including gaming and lottery operations, real estate services, petroleum-related businesses, money lending services, non-tourism focused rental properties, most professional and consultancy services, auto rental companies, and entertainment promotion firms, among other excluded business types.

    The launch of this amnesty programme comes as Belize’s government is working to navigate the 2026 Briceño budget through persistent global economic headwinds, placing a renewed focus on supporting the small business sector that forms the backbone of the country’s domestic economy.

  • PRESS RELEASE: DOMLEC advises customers of increase in fuel surcharge for April 2026

    PRESS RELEASE: DOMLEC advises customers of increase in fuel surcharge for April 2026

    Roseau, Dominica – April 16, 2026 – Dominica’s main power provider, Dominica Electricity Services Limited (DOMLEC), has publicly notified customers of an upcoming adjustment to electricity pricing that will see a higher fuel surcharge applied to April 2026 energy consumption, with the change appearing on customer bills distributed in May 2026.

    The monthly fuel surcharge, a standard variable component of DOMLEC’s billing structure calculated based on the prior month’s energy sales and prevailing fuel costs, will for the first time incorporate an additional line item for geothermal energy production costs this billing cycle. The revised surcharge is computed using three core inputs: March 2026 energy sales, global fossil fuel prices, and the still-limited output from the island’s new geothermal facility.

    In a public statement announcing the change, DOMLEC General Manager Dwayne Cenac outlined the combination of market and environmental factors that have driven the latest rate increase. He confirmed that the new fuel surcharge for April consumption will climb to $0.50 per kilowatt-hour, with the single largest contributor to the jump being a dramatic uptick in global fossil fuel prices. Since the start of 2026, Cenac noted, the utility’s average fuel costs have risen by roughly 33%, a surge directly tied to persistent geopolitical instability in the Middle East, a key global oil production region.

    This most recent increase marks the third consecutive monthly rise in the surcharge, a trend that began in February 2026. To contextualize the shift, Cenac pointed to seasonal changes in the island’s hydropower output, another core pillar of Dominica’s energy mix. In December 2025, high water levels allowed hydropower to contribute 35% of total national electricity generation, pushing the January 2026 surcharge down to a low of $0.32 per kilowatt-hour. By March 2026, however, seasonal dry conditions reduced hydropower output to its long-term average of roughly 25.5%, driving the surcharge up to $0.36 in February and $0.37 in March respectively.

    While the utility has formally integrated geothermal energy into its generation and billing framework, the new renewable source currently makes only a modest contribution to the national grid. The geothermal plant remains in the final commissioning phase, and Cenac confirmed that in March 2026, it accounted for just 6.1% of total electricity production. Looking ahead, though, the utility frames geothermal as a long-term solution to volatile pricing: as the plant scales up output over coming months and years, it is expected to play an increasingly large role in buffering consumer costs from global fossil fuel market swings.

    DOMLEC has reaffirmed that the unprecedented 35% jump in the April surcharge is overwhelmingly driven by the sharp global fuel price increase, rather than the new geothermal cost inclusion. To help customers manage higher near-term bills, the utility is urging households and businesses to proactively adjust their energy consumption where possible. In the near future, Cenac added, customers will also gain access to a new time-of-use billing structure, which will offer discounted rates for electricity used during off-peak hours, spanning late evening through early morning.

    “Our call for energy conservation comes as we work through the transition from a system heavily reliant on diesel to one that draws more and more power from renewable sources,” Cenac explained. “Conscious energy use not only helps individual households keep their monthly bills manageable, it also advances our collective goal of building a more sustainable energy future for all of Dominica.”

    Moving forward, DOMLEC reiterated its long-term commitment to expanding access to reliable, sustainable, and affordable electricity across the island, with ongoing investment in renewable energy infrastructure and grid efficiency upgrades at the core of its strategic plan.

  • Antigua And Barbuda Hosts Caribbean Travel Marketplace 44 During Culinary Month In May

    Antigua And Barbuda Hosts Caribbean Travel Marketplace 44 During Culinary Month In May

    The dual-island Caribbean nation of Antigua and Barbuda has announced that it will play host to the 44th edition of the Caribbean Hotel and Tourism Association’s (CHTA) Caribbean Travel Marketplace, one of the region’s most influential tourism industry gatherings, from May 12 to 15, 2026. What makes this announcement particularly notable is the event’s intentional alignment with the country’s popular annual Culinary Month, a weeks-long celebration that puts the destination’s fast-growing food culture front and center for visitors and industry stakeholders alike.

    This strategic pairing of the major industry trade show and the culinary festival creates a one-of-a-kind experience for the hundreds of regional and international travel buyers and suppliers expected to attend the 2026 Marketplace. Attendees will not only be able to conduct core business networking, negotiate partnerships, and explore new tourism product offerings, but also get a first-hand immersive deep dive into Antigua and Barbuda’s vibrant, rapidly evolving local food scene.

    The nation’s rising profile as a culinary tourism hub has already earned it international recognition: just last year, Antigua and Barbuda took home the 2025 title of “Caribbean’s Best Emerging Culinary City Destination” from the World Culinary Awards. This accolade cements the country’s growing reputation as a go-to spot for food-focused travelers across the region and beyond, adding extra weight to the decision to co-locate the 2026 Marketplace with Culinary Month.

    Colin C. James, CEO of the Antigua and Barbuda Tourism Authority, emphasized the unique value that this combined event will deliver. “Culinary Month gives food lovers from across the globe an unparalleled chance to experience our distinct cuisine, our rich cultural heritage, and the warmth of our people firsthand,” James explained. “By aligning the Caribbean Travel Marketplace with our festival, we’re giving our industry partners the opportunity to connect with our destination in a truly authentic, memorable way that goes far beyond a typical trade show setting.”

    To integrate the culinary celebration seamlessly into the Marketplace schedule, event organizers have planned a full slate of special food-focused experiences open to attending delegates. Running from May 3 to 17, overlapping both the lead-up to and duration of the 2026 Marketplace, the destination’s annual Restaurant Week will offer island-wide prix-fixe menus at more than 50 participating local restaurants. Menus will be available at three accessible price points: $25, $50, and $75 U.S. dollars, giving delegates options to fit every schedule and budget. A curated series of small, local cookshop demonstrations led entirely by native Antiguan and Barbudan chefs will also be on offer, highlighting traditional cooking techniques and local ingredients.

    For delegates looking for a structured evening food experience, the Culinary Crawl, a dine-around tour showcasing the thriving restaurant scene along Antigua and Barbuda’s scenic south coast, will be open for booking on May 14, right in the middle of the Marketplace. Delegates are actively encouraged to build these culinary experiences into their official event itineraries to get the most out of their visit. Updated information on participating restaurants, special event details, and booking instructions for Culinary Month activities will be published regularly on the official Antigua and Barbuda Tourism Authority website as the 2026 event approaches.

  • Insurance Association of Jamaica to host business conference

    Insurance Association of Jamaica to host business conference

    KINGSTON, Jamaica — Jamaica’s leading industry body for insurance providers, the Insurance Association of Jamaica (IAJ), has unveiled plans for a major national business conference focused on tackling the most pressing challenges and opportunities currently reshaping the country’s insurance landscape. Scheduled to take place on April 20 and 21, the event will carry the forward-looking theme “Charting the Future Together – Strengthening the Insurance Ecosystem”, and is designed to convene a diverse cross-section of key stakeholders from across the sector.

    Attendees and participants will include top industry executives, financial regulators, government policymakers, and technology innovators, all gathering to collaborate on mapping a more resilient, adaptive future for Jamaica’s insurance industry. The conference’s core agenda centers on three high-priority topics: robust risk management strategies, targeted measures to combat insurance fraud, and accelerated digital transformation across all industry operations.

    As the official representative organization for Jamaica’s entire insurance sector, the IAJ has long held a central role in advancing the industry’s shared goals. It works continuously to lift industry-wide ethical standards, foster closer collaboration between competing and complementary stakeholders, and position insurance as a foundational tool for household financial protection, national disaster resilience, and sustained long-term economic growth for the island nation.

    In a statement announcing the event, IAJ Executive Director Everton McFarlane emphasized that the upcoming conference fills a critical need as a unifying platform for driving both constructive dialogue and tangible action across the sector. “At a time when households and businesses across Jamaica are grappling with growing exposure to both financial volatility and environmental hazards, it is more important than ever that we deepen cross-sector collaboration, embrace innovative solutions, and strengthen the protective systems that underpin our national economy,” McFarlane explained.

    Beyond general collaborative sessions, the conference will feature structured keynote addresses and targeted high-level roundtable discussions digging into specific industry priorities, including the evolving threat of insurance fraud, ongoing regulatory reform efforts, and the integration of emerging digital technologies to boost operational efficiency and improve end-to-end customer experiences.

    A robust lineup of distinguished guest speakers has been confirmed for the event, bringing cross-sector expertise across policy, business, finance, and law. These include Matthew Samuda, Jamaica’s Minister of Water, Environment and Climate Change, who will deliver a address focused on climate-related risk assessment and industry-wide sustainability efforts; Courtney Campbell, president and chief executive officer of VM Group, who will share his insights on how to leverage technology and values-driven leadership to strengthen Jamaica’s entire insurance ecosystem; Sanya Goffe, a partner at the prominent Jamaican law firm Hart Muirhead Fatta, who will break down strategies for building a robust, sustainable national pension ecosystem; and Steven Whittingham, chairman of the Jamaica Stock Exchange and CEO of GK Financial Group, who will draw on his experience leading strategic growth and regional digital transformation at GraceKennedy to share actionable expertise.

  • Cash-strapped FSC wants fee hike

    Cash-strapped FSC wants fee hike

    Jamaica’s top financial regulator is sounding the alarm over a crippling funding gap that threatens its ability to oversee the island nation’s fast-growing insurance sector, pushing officials to request parliamentary approval for long-delayed increases to industry fees that have not been adjusted since 2008.

    Lieutenant Colonel Keron Burrell, executive director of the Financial Services Commission (FSC), laid out the stark scope of the agency’s financial strain during testimony Thursday before Parliament’s Regulations Committee, where members reviewed the proposed 2026 Insurance (Amendment of Twentieth Schedule) Regulations. Burrell explained that the disconnect between the insurance sector’s exponential growth and the FSC’s stagnant, fee-funded budget has left the regulator severely under-resourced to meet its core mandate.

    “When the FSC launched in 2008, we had a workforce of 131 people overseeing a sector with roughly $170 billion in total assets,” Burrell told committee members. “After 18 years, the industry’s total assets have surged to more than $728 billion, yet we have only been able to add a small number of new staff, constrained entirely by the limited revenue we collect from frozen fees.”

    Burrell emphasized that the sector’s evolution has not only been quantitative but also qualitative, bringing new levels of complexity that demand upgraded technological infrastructure and specialized regulatory expertise to detect misconduct and manage systemic risk. Unlike many government agencies, the FSC operates on a full cost-recovery model, receiving no public subsidy to cover operational gaps. “We do not get a government subvention, so every investment in better oversight has to come from the fees we charge the industry we regulate,” he added.

    Aisha Wright, a divisional director at Jamaica’s Ministry of Finance and the Public Service, further detailed the scale of the revenue shortfall in her testimony. For the 2024-2025 fiscal period, the FSC incurred an estimated $749 million in costs to supervise the insurance industry, but collected just $487.2 million in fees – leaving a $262.5 million gap that the agency has had to cover using its cash reserves. Wright noted that the proposed fee changes serve two key goals: closing the funding gap to protect regulatory capacity and consumer protections, and simplifying the current convoluted fee structure. Under the current system, annual fees follow a tiered model for life and general insurance providers; the new framework will replace this with a single standard rate, making the system both easier for firms to understand and for the FSC to administer.

    Burrell confirmed that the FSC has already dipped deep into reserves to cover ongoing operating costs, warning that this stopgap measure is not sustainable in the long term. Across all the sectors the FSC regulates, the agency is currently operating at an annual loss of more than $500 million, with the insurance sector alone accounting for $200 million of that deficit. “We have been burning through reserves just to keep operations running,” Burrell said. “It’s not a sustainable trajectory – any individual or organization would face collapse if they keep spending savings without growing their income.”

    The proposal has drawn a measured response from parliamentary committee members. Kingston Central Member of Parliament Donovan Williams acknowledged that the regulator’s situation makes a fee adjustment unavoidable, but raised questions about the timing of the hike, coming as Jamaica continues to recover from the widespread damage caused by Hurricane Melissa in October 2024. “Coming off one of the most devastating weather events to hit our island, public and industry resistance to any price increase is understandable, so timing is a real concern,” Williams said. Still, he concluded that the 18-year freeze on fees and the FSC’s deteriorating financial position make the adjustment justified. “After 18 years of operating on an extremely tight budget, and now dipping deep into reserves to cover daily costs, I believe the increases are warranted at this juncture,” he added.

    In response to concerns about industry pushback, Burrell noted that the FSC has repeatedly delayed the fee hike in response to past crises, including the COVID-19 pandemic and earlier hurricanes such as Beryl. “There is never an ideal time to raise fees, but we have waited 18 years already, and we have shown flexibility when the country faced crises,” he said. “We have listened to stakeholders’ concerns through every step of this process, but at this point, the need for adjustment can no longer be put off.”