Business
Hurricane season brings financial fears in the Caribbean
Gemma HandyBusiness reporter, St Johns, Antigua
Getty ImagesFor some Barbudans, thunderstorms still trigger flashbacks of the night in September 2017 when they lost everything they owned to Hurricane Irma’s devastating winds.
Eight years on, while memories may be close to hand, home insurance for many on Barbuda and other islands in the Caribbean’s hurricane belt is more prohibitively expensive than ever.
Across the region premiums have gone through the roof in the past two years, surging by as much as 40% on some islands, according to industry figures.
Experts blame a perfect storm of increasing risk – as the region sees worsening and more rapidly intensifying cyclones – yet tiny populations of people to pay for policies, equating to poor returns for insurance companies.
Dwight Benjamin’s Barbuda home was one of few left relatively undamaged by Irma. After the storm, he invested in a one-room extension topped with a concrete roof that will serve as a shelter for his family should disaster strike again.
“I think the house should be sound enough but that’s my added protection,” he says.
With peak hurricane season now in full swing, Dwight is among many Caribbean people anxiously monitoring weather platforms for activity in the Atlantic. Should a system head his way, he will do as he did during Irma – hope and pray.
“I’ve never had insurance; most Barbudans don’t really think it’s worth it. It’s just an added expense to the meagre resources we have,” he explains.
“Plus, we believe in what we have built and that it should be able to withstand the weather.”
Courtesy Dwight BenjaminLike Dwight, many Caribbean people build homes “out of pocket”, rather than opting for mortgages that can have high interest rates in this part of the world.
And the majority of homes on islands affected by hurricanes are uninsured. In Jamaica only 20% are reported to have cover, and just half in Barbados.
It is not just storms threatening the region, but earthquakes and volcanos too, points out Peter Levy, boss of Jamaican insurance company BCIC.
As a result of these threats of natural disaster, which Mr Levy calls the Caribbean’s “unique market”, the cost of home insurance will always be high.
One Antiguan insurance firm, Anjo, typically charges premiums of between 1.3% and 1.7% of a home’s value. Whereas in the UK, for example, it can be less than 0.2%.
Getty ImagesThe Atlantic hurricane season runs from 1 June to 30 November, with the most activity occurring between mid-August and mid-October. The northern Caribbean nations, such as Antigua and Barbuda, the Bahamas, British Virgin Islands, and the Dominican Republic, are among the most at risk of a direct hit.
The peak months can be torturous for people with Irma-related trauma, says Mohammid Walbrook, another Barbudan resident. “Whenever there’s an announcement of a storm coming our way, it brings back bad memories. For some, even thunder and lightning are a trigger,” he says.
Back in 2017, Mohammid took shelter in a bathroom with his mother, father, sister and nephews when Irma’s category five winds tore the roof from his parents’ home.
His own uninsured two-bedroom property was also badly damaged. He was one of several Barbudans to receive a new house through assistance from international donors.
Courtesy Mohammid WalbrookWhile some Caribbean countries – like British territory Turks and Caicos, also battered by Irma – have emergency cash reserves that can help with post-storm restoration, others do not have that luxury.
For deeply indebted nation Antigua and Barbuda, agencies like the United Nations Development Programme (UNDP) are a lifeline in the aftermath of a natural disaster.
The country’s prime minister Gaston Browne estimated the cost of rebuilding Barbuda after Irma, where 90% of buildings were damaged, topped $200m (£148m). Help came from China, the European Union and Venezuela, among others.
In 2017, the UNDP stumped up $25m for Barbuda and the island country of Dominica, which was ravaged by Hurricane Maria that same month.
The money restored more than 800 wrecked buildings across the two islands. But the body’s intervention was crucial in other ways too.
With livelihoods destroyed, the UNDP’s cash-for-work programme hired hundreds of local residents who had suddenly found themselves unemployed.
They assisted with everything from debris removal to reconstruction of homes and infrastructure, including Barbuda’s hospital and post office, the UNDP’s Luis Gamarra tells the BBC.
“Injecting economic resources into affected families helps reactivate the local economy,” he says.
Almost 1,000 contractors were also trained in more resilient “build back better” techniques, to safeguard structures against future disasters.
“The climate is changing and putting more pressure on governments and communities. Storms are becoming more frequent, more intense and happening earlier in the year too,” Mr Gamarra continues.
He thinks the expansion of partnerships with the private sector and with other countries in the region might help mitigate the impacts.
One such mechanism is the Caribbean Catastrophe Risk Insurance Facility, of which 19 Caribbean governments are members. Set up after Hurricane Ivan in 2004, the first-of-its-kind risk-pooling venture allows member governments to buy disaster coverage at low cost.
Last year it made record payments topping $85m to Hurricane Beryl-hit islands.
In Antigua and Barbuda, hurricane preparedness is a year-round endeavour, explains Sherrod James, director of the country’s office of disaster services.
Assessments of buildings to be used as storm shelters, along with training of volunteers to man them, starts months before the season starts, he says.
“We also meet with the private sector, helping them put policies and preparations in place, looking at the safety and resilience of their buildings. We make sure our critical partners, such as the ports, are prepared.
“And we do a lot of proactive work to address chokepoints within waterways that can exacerbate flooding,” adds Mr James. “These days, storms can go from a category one to five in a day. The new norm has thrown out the old regiment of what has to be done; we have to be much more proactive now.”
For many Barbudans, this time of year will always bring trepidation. Dwight was among dozens who recently attended a Hurricane Irma remembrance service at the island’s Pentecostal Church.
“It was very touching and brought back a lot of memories,” he says. “This time of year, we keep an eye on the weather and our fingers crossed. But we are resilient people and we know how to survive.”
Business
US stocks today: Wall Street inches higher as markets eye ceasefire deadline; Dow jumps 300 points, S&P 500 remains flat – The Times of India
US stocks moved higher on Tuesday, as investors remained optimistic over a possible extension of the US-Iran ceasefire. Markets showed early strength, with the Dow Jones Industrial Average rising 0.56% or 279 points to 49,721.56 around 8 pm IST. The S&P 500 inched up 0.2% to 7,129, while the Nasdaq Composite gained 96 points or 0.4% to reach 24,500. As trading progressed, the upward momentum strengthened, with the Dow climbing 397 points, or 0.8%, and the S&P 500 adding 0.2%, putting it within reach of another record high. The Nasdaq remained modestly higher. Investor sentiment was shaped in part by developments in the Middle East. Oil prices, which had surged a day earlier amid renewed disruption to the Strait of Hormuz, eased on Tuesday. Brent crude slipped 0.7%% to $94.78 per barrel ahead of the expected expiry of a two-week ceasefire between the United States and Iran. The conflict has driven sharp swings in oil markets, with prices ranging from about $70 before the war to peaks of $119 as concerns over a prolonged closure of the key shipping route intensified. Economic data released during the session pointed to continued resilience in consumer activity. US retail sales rose 1.7% from the previous month to $752.1 billion, beating expectations, largely due to higher petrol prices. Spending remained relatively steady even when excluding gasoline sales, indicating broader stability in consumption during the first full month of the conflict. Global markets presented a mixed picture, with European indices trading unevenly after a stronger performance in Asia, where South Korea’s Kospi index jumped 2.7%. In the bond market, US Treasury yields edged higher, with the 10-year yield ticking up to 4.27% from 4.26% the previous day. Attention is also turning to Washington, where Kevin Warsh, nominated by US President Donald Trump to lead the Federal Reserve, is scheduled to testify before Congress later in the day. Investors are expected to closely watch his remarks for indications on interest rate policy and the central bank’s independence.(Disclaimer: Recommendations and views on the stock market, other asset classes or personal finance management tips given by experts are their own. These opinions do not represent the views of The Times of India.)
Business
Leave, holidays and encashment: What India’s changing labour laws mean for employees – The Times of India
Leave is often seen as a simple workplace benefit – an approved absence from work. In reality, it is one of the more structured and regulated aspects of employment in India. With the implementation of new labour codes, questions around leave entitlement, holidays and leave encashment have drawn renewed attention. This matters because these rules affect not just everyday working life, but also what happens when an employee leaves an organisation.For employers and employees, understanding how leave works today is not always straightforward. This is because two legal systems operate side by side: the new central labour codes and the older State-level Shops and Establishments (S&E) laws. While the intent is to move towards a simpler and more uniform system, the actual position still depends on job role, location and which law applies.Different types of statutory leaveIndian labour laws recognise several types of statutory leave. The most important is earned leave (also called privilege leave). This leave builds up over time based on how many days an employee works. In addition, there are provisions for sick leave, casual leave, and national and festival holidays.Earned leave is different from other types of leave because it has both time-off value and financial value. If it is not used, it can build up and may be paid out in cash – either during employment or when the employee leaves, subject to carry forward limits – depending on the applicable law and company policy.Sick leave and casual leave, on the other hand, are meant for short-term or urgent needs and are usually not designed to be encashed.National and festival holidays form a separate category. These ensure paid holidays on important national or regional days, based on State notifications and local rules.Labour codes vs Shops and Establishments lawsA frequent point of confusion is the interface between the labour codes and State Shops and Establishments Acts.The Occupational Safety, Health and Working Conditions Code introduces a common framework for leave, but for people classified as “workers” under that law. At the same time, State S&E laws continue to apply to many salaried employees working in offices, shops and service-sector businesses.Because of this, uniformity has not fully arrived yet. Different State laws and leave rules may still apply for employees depending on where they are employed and work. Those who fall under the labour code framework move towards a more standard national system. Where both laws could apply, guidance from authorities suggests that the more beneficial provision would generally continue to apply.
Employers are expected to apply these frameworks together and ensure consistency as the new system takes shape.How earned leave builds upEarned leave generally depends on how long an employee has worked.Under the labour codes, earned leave accrues at a standard rate of one day for every twenty days of work, subject to certain eligibility conditions. This is meant to create a common reference point across the country.State Shops and Establishments laws, however, follow different approaches. Some States grant a fixed number of leave days each year, while others link leave closely to days worked. States also differ on how much unused leave can be carried forward.Sick leave, casual leave and holidaysSick leave and casual leave are mainly meant for short-term protection rather than long-term accumulation. Sick leave helps employees during illness, while casual leave allows flexibility for sudden personal needs.These types of leave are mostly governed by State law and internal company policy, with limited direct impact from the labour codes. Usually, unused sick or casual leave does not carry forward.National and festival holidays are largely decided at the State level. Employers are expected to follow notified holiday lists or compensate employees who work on those days, as per State rules.Carrying forward unused earned leaveHow unused earned leave is treated is one area where the labour codes bring more structure.Earlier, State laws allowed different levels of leave accumulation. Under the labour code approach, carry-forward is subject to clear limits, after which settlement mechanisms may apply. This is intended to avoid unlimited build-up of leave while still protecting employee interests.If leave could not be taken because of work requirements, safeguards exist to ensure such leave is not lost automatically.Annual leave encashment under labour codesAnother change under the labour codes is clearer recognition of leave encashment during ongoing employment.Earlier, in many States, leave was typically encashed only when an employee resigned, retired or was terminated. Under the new labour codes framework, employees may be entitled to encash leave exceeding permissible carry forward limits even while they remain in service. As per provisions under labour codes, a worker shall be entitled on his / her demand for encashment of leave at the end of calendar year. Worker shall be entitled, where the total number of leave exceeds 30 days, to encash such exceeded leave.Leave encashment when employment endsAcross Indian labour laws, one position has remained largely consistent. Unused earned leave is expected to be settled when employment comes to an end, whether the employee resigns, retires, is retrenched or is terminated.How this amount is calculated depends on the applicable law. State S&E laws refer to specific wage definitions, while the labour codes require calculation using the definition of “wages” under the Code. This may differ from earlier practice.
What employees and employers should keep in mindFor employees, the key point is that leave is not only a company benefit but part of a legal framework. How it applies depends on role, location and legal coverage.For employers, the focus remains on aligning internal policies with both Central and State laws, while ensuring smooth implementation. Clear communication and regular policy reviews will continue to be important during this transition.Leave rules may not attract the same attention as pay or job security, but they play a quiet role in work-life balance and financial certainty. As India’s labour framework evolves, earned leave is increasingly seen not just as time away from work, but as a regulated employment benefit with defined outcomes.(The author, Puneet Gupta is Partner, People Advisory Services Tax at EY India)
The war in the Middle East has brought renewed attention to Britain’s vulnerability to energy price shocks.
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US stocks today: Wall Street inches higher as markets eye ceasefire deadline; Dow jumps 300 points, S&P 500 remains flat – The Times of India
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