Chief Secretary: Insurance industry doing better in Tobago than agriculture and manufacturing combined

THE insurance industry plays a crucial role in Tobago, contributing to four per cent of its GDP, outperforming both the manufacturing and agriculture sectors combined.

The statistics were revealed by Tobago House of Assembly Chief Secretary Farley Augustine on April 5 at the launch of the local chapter of the General Agents and Managers Association (GAMA) at the Hyatt Regency, Port of Spain.

Augustine said, “The insurance industry plays a really important role when it comes to our national economic development. The data for Tobago, via the Central Bank, suggest that in 2021, my little island was receiving $94.8 million in premiums and paying claims of closer to $38 million. When I look at that data, that's about 4.4 per cent of Tobago’s GDP and employing roughly around 81 people and for an island small as ours, that is a big deal.”

He reminded those who were present of the Caribbean Catastrophe Risk Insurance Facility – the world’s first multinational insurance agency formed in 2007.

He used this to drive home the theme of “Stronger Together,” highlighting that the entity was created to assist signatory countries with funding from natural-disaster fallouts

The 16 signatories are: Anguilla, Antigua & Barbuda, Bahamas, Barbados, Belize, Bermuda, Cayman Islands, Dominica, Grenada, Haiti, Jamaica, St Kitts & Nevis, St Lucia, St Vincent & the Grenadines, TT and the Turks & Caicos Islands.

Despite all the benefits, Augustine said there is still the view, by some, that insurance agents are “conmen” and “scammers” which he said must change.

“Sometimes the insurance industry is at fault for not selling itself well. And too many people still think of insurance agents as smartmen, conmen even, and that somehow you will never benefit once you put your pennies in. That’s because you have not done a very good job of letting the public know how much you contribute to saving lives. How much do you pay out annually.”

President of GAMA’s local chapter Amery Rauseo agreed with Farley’s claim, to a point. Responding to questions by the media, Rauseo said while the insurance industry can do more to change the perception, there is a growing appreciation for what it does.

“With the help of all these stakeholders, educating the public is the main thing. I mean, the fact is, when you look at the situation with NIS now and a lot of people were dependent on NIS for their pension, that has now changed. “

He said the standard of living enjoyed by many now, they think it will remain when they retire but most are faced with a harsh reality post retirement. That is why insurance is needed to have personal retirement plans, he said adding that insurance agencies look at providing for needs, at a time when it is critically needed.

GAMATT represents the management level of insurance companies and as an association relies on fellow members locally and internationally to learn best practices. GAMA was formed in the US and spread across the globe with TT becoming the first regional member with the appointment of Rauseo and his board, last Wednesday. GAMA’s aim is to provide the proper teaching to agents and the population about financial literacy and other monetary goals.

The other insurance associations are the Association of TT Insurance Companies (ATTIC) – which represents insurance companies – and TT Association of Insurance and Financial Advisors (TTAIFA) which represents the insurance agents.

“Soon we are going to launch a programme called Emerging Leaders in September. The thing about why GAMATT is significant is that it is 30 years in the making. Bringing GAMA to TT means we can take the knowledge from the US and other parts of the world and adopt it culturally.”

Rauseo added that he is a second-generation insurance agent and service to the people is what brought him to the “noble profession.”

He highlighted that after becoming a benefactor of his father’s policy and eventually paying out policies to other benefactors, he understood the value of those policy payouts and continues to do what he can to help others. GAMATT, he said, will remain the moral compass with an international benchmark for local managers to train their agents to ensure the profession remains noble.