Samoa and the Pacific are paying lower rates than other island regions facing similar threats from natural disasters – and residents should expect to pay more in the future.
That’s the warning from the Chief Executive Officer of THB Singapore Reinsurance Brokers, Nick Cochrane. He was speaking to the Samoa Observer before he was officially welcomed him on Wednesday night.
He said the real problem is that these disasters are becoming more frequent and the values at risk are getting larger and larger.
“We have insurance companies that take the risk off of you,” he said. However, Mr. Cochrane said Samoa still has a long way to go to catch up especially in terms of rates.
“I think that the cost of insurance should rise in the Pacific,” said Mr. Cochrane.
“At the moment, they are way below other islands around the world that have the same problem as Samoa does, so people should expect rate increases”.
He repeated his comments warning of rises in a speech responding to a welcome hosted at the Samoa Tourism Fale.
During the welcome, Prime Minister Tuilaepa Sa’ilele Malielegaoi first raised the issue of more natural disasters.
Tuilaepa spoke about the actions Samoa has had to take to reduce the impact of natural disasters when they strike Samoa.
“These forces of nature could strike at any time with little or no warning,” said Tuilaepa.
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“Heavy rains that cut up our roads cause landslides, damage properties and includes work delays with cost escalations – and is virtually an annual event.”
“The service of insurance at such time would provide much needed hope and comfort with its clients that suffer the impacts of natural disasters.”
In partnership with the Federal Pacific Insurance Company, Mr. Cochrane said that they are working together to reduce the risks of insurance during natural disasters.
“I’ve been working in this business for a few years now and around the islands many have had similar problems as Samoa in terms of catastrophes”, said Mr. Cochrane.
“What we do is encourage good risk management so that people can take precautions on the many disasters that are happening”, he said.
“They can build flood barriers, they can protect their windows, they can take precautions against some of the disasters”. Aside from business, Mr, Cochrane also shared on one of the main purposes of his visit.
“I do a lot of insurance business around the world but I have never been to Samoa,” he said. “I think it’s because of my mum’s history I just want to open up and go back and tell her about it - she’ll be interested to hear about it”.
Outside of the serious business of insurance, Mr. Cochrane also warmed to the humour at his welcoming party.
“I’m actually applying for a Samoan passport,” he joked. “My mother was born in Fiji, she got married in Fiji then she came on her honeymoon to Samoa. With insurance being an exercise in ‘probabilities’, it must be considered possible he was conceived in Samoa, said Mr. Cochrane to laughter.
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