A major blow to the Caribbean economy:
Faced with the gradual withdrawal of insurers such as Generali, Allianz, and Groupama, investors and business leaders may think twice before building or investing locally. With insurance costs set to skyrocket and coverage limited, projects will become less profitable, jeopardizing economic development. This situation is a direct consequence of the extreme and sometimes reckless social unrest that has recently shaken Martinique, resulting in serious and lasting repercussions on the territory’s attractiveness.
Philippe PIED
Amid ongoing social unrest in Martinique, several major insurance companies, including Generali, Allianz, and Groupama, are taking drastic measures that threaten the economic stability of local businesses. The suspension of certain insurance policies and the gradual withdrawal of essential coverage mark an alarming trend for France’s overseas territories.
A crisis affecting an entire industry
Generali, through its subsidiary GFA Caraïbes—which has been operating in the Caribbean for more than 50 years—was the first to announce the suspension of new insurance policies for local businesses. Régis Lemarchand, head of the property and casualty (fire, accidents, and miscellaneous risks) division, attributed this decision to growing social instability and difficulties in pursuing claims against the government. But Generali is not alone: Allianz and Groupama are also following suit by withdrawing coverage for risks related to riots, thereby increasing the pressure on local businesses that are already struggling.
Colossal losses for insurers
The recent social unrest sparked by the Rally for the Protection of Afro-Caribbean Peoples and Resources (RPPRAC) has had major financial repercussions. In Martinique, since September 2024, insurers have reported:
- More than 70 claims for compensation, representing an estimated cost of 20 million euros ;
- Incidents primarily related to fires that destroyed buildings and equipment; ;
- Massive operating losses for insured companies.
A threat to the local economy
The joint decision by these three major insurers has raised fears of an unprecedented insurance crisis in the Caribbean. Local businesses must now contend with:
- A shortage of suitable insurance policies; ;
- A potential increase in premiums for the coverage options still available; ;
- A weakening of the regional economy, which has already been undermined by the high cost of living and social protests.
A Necessary Dialogue Between Insurers and Government Authorities
In light of this crisis, insurers are calling on the authorities to take swift action. Their requests include:
- Strengthening Law Enforcement, to protect businesses and enable better risk management; ;
- Simplifying the Claims Process, in order to minimize delays and legal costs.
Generali’s announcement, followed by those from Allianz and Groupama, reflects a troubling trend: this is not an isolated withdrawal, but rather a widespread reevaluation of risk coverage in the overseas territories. This situation calls for sustainable solutions; otherwise, local businesses risk sinking into an even deeper economic and social crisis.