VP’s announcement of overhaul of insurance industry in Guyana is quite heartening

Dear Editor,
Following on the heels of my letter, “We need massive reforms in the auto insurance industry, paying claims when accidents happen,” (GT, Nov. 27, 2024,) comes another headline, “Massive overhaul needed for insurance industry in Guyana – VP,” (INEWS, Dec. 9, 2024).
It is quite heartening to read of Vice President Jagdeo’s announcement that reforms are in the making to regulate the insurance industry, which had become a law unto itself. The news report said, “Guyana’s insurance industry is one that is ripe for upgrades, with Vice President Bharrat Jagdeo acknowledging that there is much that needs improving in the insurance industry, such as better compensation for drivers who get into accidents… improvements that are becoming ever more necessary as Guyana’s economy continues to grow…Jagdeo noted that the Government is open to exploring ways of improving the insurance landscape, and further, insurance sector legislation is likely in the future. He compared the insurance sector to the financial one, noting that while it has grown significantly, there is still much room for improvement.”
Following publication of my call for reform of insurance, someone told me she is waiting for a settlement since June 2024. Another said he has not been paid for an accident that occurred sometime back. It’s the same story everywhere, of people waiting for months and not receiving a settlement payment. One company told me their process takes 3-4 weeks.
I must extend kudos to Hand-in-Hand for expediting an auto claim from someone who asked me to help. That was quite customer-friendly of this longstanding company in Guyana.
The Insurance Industry has been broken for a long time, and operatives in that industry have gotten away with bullying their customers with slow motion and maximum delay probably intended to frustrate them. Customer service generally has been at an all-time low in this broken system. I don’t know if the Commissioner of Insurance has any responsibility for ensuring claims are settled in an expeditious manner. That office needs to rise and shine.
In any reform, there has to be guidelines on things such as the number of days within which a claim should be settled; what companies should cover when there is an accident; number of hours within which a police report is available, because many times insurance companies say they are waiting on a police report of the accident.
I think that, because our insurance system had no accountability for expeditious settlement of claims, new insurance companies have emerged to take advantage of the loosey goosey way insurance companies operate in Guyana. There is easy money to be made.
The Guyana Consumers Association (GCA) must also wake up and represent consumers in insurance matters. It is difficult to contact this organization. The Government agency known as “Guyana Competition and Consumer Affairs Commission” can also help when insurance companies give you the run around. I haven’t seen a website for the Commissioner of Insurance.
I say reforms must be on the fast track! Thank you, VP. Which minister is in charge of insurance?

Sincerely,
Dr Jerry Jailall