The Organisation of Eastern Caribbean States (OECS) comprises Antigua and Barbuda, Dominica, Grenada, Montserrat, Saint Kitts and Nevis, Saint Lucia and Saint Vincent and the Grenadines.  It has a common currency and central bank - the Eastern Caribbean Central Bank (ECCB).

Of the OECS states, Axco’s Eastern Caribbean Report currently covers Antigua and Barbuda, Dominica, Grenada, Saint Lucia and Saint Vincent and the Grenadines.  The insurance sectors of these countries mirror those of many other Caribbean islands, in that they comprise a proliferation of general agency operations and a relatively small number of largely Caribbean-owned insurance companies.  The number of agencies and companies is disproportionately large for the small volume of business in the region. 

Property and motor are the two main non-life classes in the countries covered by this report. Motor third party insurance is compulsory in all the countries, and the ever-present hurricane exposure and, to a lesser extent, flood, earthquake and volcanic eruption, is the prime driver of the property insurance market.

OECS governments are still coming to terms with the region's biggest business casualty of the global financial crisis.  In January 2009 the Trinidad and Tobago government took control of CL Financial (or CLICO group) whose interests include manufacturing, health services, insurance, spirits, real estate and energy.

The CL Financial crisis sent shock waves across the region, where the conglomerate has extensive interests, notably in the insurance sector under the CLICO name, as well as its sister British American Insurance Company (BAICO) arm, which has been declared technically insolvent after being placed under judicial management. 

One of the few benefits arising out of the crisis is that it has given renewed impetus to the need for improved legislation. As a consequence new uniform insurance legislation has already been implemented in Anguilla, Antigua & Barbuda and St Kitts & Nevis, and was also approved by Grenada’s Lower House in December 2009.

Draft legislation in the other OECS states appears to be at an advanced stage and the ECCB appears committed to legislation being in place during 2010.

With independent regulatory bodies or units also being established in OECS countries, it is to be hoped that standards of regulation in the sector will raise the integrity of the insurance sector and offer improved protection for investors and consumers.

Axco’s Insurance Market Reports on Eastern Caribbean are in production following our consultant’s visit to the region.  They will be published in the first quarter 2010.