Guardian Says It Has Settled Close to 80% of Its Hurricane Melissa Claims

Jamaica · INSURANCE

While Guardian reports progress, most Jamaican policyholders remain underinsured, and the wider market still faces large backlogs.

Guardian Holdings says it has settled close to 80% of its Hurricane Melissa claims in Jamaica, according to the Financial Gleaner. The regional insurer, headquartered in Trinidad and Tobago, reported this progress in late August 2026.

Guardian’s Progress on Hurricane Melissa Claims

Group chief executive Ian Chinapoo said the company had settled about 70% of Hurricane Melissa claims by June. Now, that figure is approaching 75% to 80% for Jamaica, he told the Financial Gleaner.

This means the insurer has finished paying out most of the claims it received. A settlement rate is the share of claims an insurer has completed paying.

The Storm’s Devastating Impact

Hurricane Melissa struck Jamaica as a Category 5 hurricane in late October 2025. The storm caused widespread destruction across the island.

The Planning Institute of Jamaica estimated total damage and losses at 1.952 trillion Jamaican dollars, about US$12.3 billion. That figure represents roughly 56.7% of Jamaica’s 2024 gross domestic product.

Insured Losses and Market Estimates

Verisk modelled insured losses for Jamaican onshore property at between US$2.2 billion and US$4.2 billion. Other catastrophe modelling firms placed privately insured losses broadly between US$1 billion and US$5 billion.

Total property damage was estimated at about US$5 billion to US$9 billion. These figures show the scale of the financial challenge facing insurers.

Wider Market Still Struggles

Across the wider Jamaican market, the Financial Services Commission and industry executives reported large backlogs. Many insurers are still processing claims from the hurricane.

In fact, the chief executive of IronRock put the market-wide figure at 35% to 40% at the end of May. The Jamaica Observer said regulators would not confirm it.

Underinsurance Worsens the Problem

Industry figures said most Melissa claims were underinsured, with some insurers putting the share at 70% to 75%. Underinsured means the policy covers less than the cost to rebuild.

Therefore, the gap falls on the household or business. This leaves many Jamaicans struggling to recover fully.

Insurers Set a Settlement Deadline

The Jamaica Observer reported on 16 August 2026 that insurers had issued a joint statement. They targeted settlement of major eligible Melissa claims by the end of September.

This move aims to speed up payments and reduce the backlog. Still, the underinsurance issue remains a major hurdle.

Guardian’s Regional Structure

Guardian Holdings Ltd is a regional insurer headquartered in Trinidad and Tobago. Its Jamaican operations are part of that group.

There is no separate stand-alone Guardian Jamaica company. Therefore, its claims progress reflects the group’s overall performance.

What This Means for Policyholders

For those with Hurricane Melissa claims, Guardian’s progress is a positive sign. However, many policyholders may still face shortfalls due to underinsurance.

In short, while some claims are being settled, the broader picture remains challenging. The industry’s joint deadline offers hope for faster resolution.

Looking Ahead

As the end of September approaches, insurers are working to meet their settlement target. The Financial Services Commission continues to monitor the situation.

Meanwhile, Guardian’s near-80% settlement rate on Hurricane Melissa claims stands out. Still, the full recovery of Jamaica will take time.

Frequently Asked Questions

What is a settlement rate for Hurricane Melissa claims?

A settlement rate is the share of claims an insurer has finished paying out. For example, Guardian says it has settled close to 80% of its Hurricane Melissa claims in Jamaica.

Why are many Hurricane Melissa claims underinsured?

Underinsured means the policy covers less than the cost to rebuild. Industry figures say 70% to 75% of claims have underinsurance problems, leaving households and businesses to cover the gap.

What is the deadline for settling Hurricane Melissa claims?

Insurers issued a joint statement targeting settlement of major eligible claims by the end of September. This was reported by the Jamaica Observer on 16 August 2026.

How much damage did Hurricane Melissa cause in Jamaica?

The Planning Institute of Jamaica estimated total damage at 1.952 trillion Jamaican dollars, about US$12.3 billion. That is roughly 56.7% of Jamaica’s 2024 GDP.

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