Chief Executive Officer of the Financial Services Commission (FSC) Warrick Ward has called for a more collaborative and forward-looking approach to insurance regulation as the region grapples with climate risk, technological disruption, and economic vulnerability.
Speaking at the opening ceremony of the 2025 annual general meeting of the Caribbean Association of Insurance Regulators (CAIR) yesterday at the Hilton Barbados Resort, Ward told industry leaders and fellow regulators that the time had come to reimagine supervision frameworks and strengthen cooperation to protect citizens and economies.
“We must move beyond reacting to change and begin shaping it,” Ward said. “Whether we are facing climate-induced disasters, the rise of insurer-tech, or the widening protection gap in our communities, our regulatory responses must be timely, inclusive, and adaptive.”
Drawing from the latest direction set by the International Association of Insurance Supervisors (IAIS), Ward highlighted four strategic pillars that he believed should guide the region’s regulatory reform agenda: innovation, resilience, inclusivity, and sustainable growth. Each, he argued, has clear and urgent relevance for Caribbean markets.
On innovation, Ward urged regulators to embrace “smart regulation” that keeps pace with technological developments like AI-driven underwriting, blockchain-based insurance products, and new parametric solutions tailored to climate shocks. However, he cautioned that innovation must be balanced by robust consumer protection and fraud prevention, especially as digital distribution channels proliferate.
“We must ask ourselves: how do we encourage new products like hurricane-triggered parametric insurance, while ensuring these tools
remain transparent, fair, and accessible?”
Ward suggested proposing greater regional collaboration on regulatory sandboxes to safely test emerging technologies.
Economic shocks
The resilience pillar, he noted, was pressing given the Caribbean’s exposure to hurricanes, sea-level rise, and economic shocks. Ward called for mandatory climate stress-testing of insurance companies and greater risk-based capital requirements to ensure solvency in the face of catastrophe.
He pointed to the Caribbean Catastrophe Risk Insurance Facility (CCRIF) as a successful model of proactive risk pooling.
Turning to inclusivity, Ward lamented the persistent underinsurance and lack of access, especially among low-income households and small businesses.
“There are far too many citizens who remain exposed to life-changing risk simply because the products do not speak to their needs or are out of reach,” he said.
The fourth pillar, sustainable growth, called for a shift in how insurance supports national development. Ward encouraged industry leaders to align with climate-resilient priorities, such as insuring renewable energy infrastructure and supporting green economic transformations.
“We are rich in solar, wave, and thermal energy,” he said. “We must find the mechanisms to finance and insure projects that unlock these assets.” (CLM)
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