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Hurricane season brings financial fears in the Caribbean

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Hurricane season brings financial fears in the Caribbean


Gemma HandyBusiness reporter, St Johns, Antigua

Getty Images A home on the Caribbean island of Barbuda that had been torn apart by the high winds generated by Hurricane Irma in 2017Getty Images

Homes in Barbuda were flattened by 2017’s Hurricane Irma

For 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 Benjamin Dwight Benjamin, wearing a blue shirt and black jeans, standing in front his his home. Behind him the porch and entrance door can be seen. A bicycle is leaning against the front wall of the. Some gas cylinders are stacked in front of the house. To the left of the house, the newly built extension which serves as a shelter can be seen.Courtesy Dwight Benjamin

Dwight Benjamin built an extension to his home which serves as a shelter during hurricanes

Like 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 Images A satellite image of Hurricane Irma hitting the island of Barbuda in September 2017Getty Images

Hurricane Irma, pictured, is the most powerful storm to have hit Barbuda since records began

The 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 Walbrook Mohammid Walbrook looks into the camera in this headshot. His head is shaven and he sports a bushy black beard with some grey hairs. Courtesy Mohammid Walbrook

Mohammid Walbrook survived Hurricane Irma

While 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.”



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Rs 20,000 crore gold, silver rush: What will people buy this Akshaya Tritiya? – The Times of India

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Rs 20,000 crore gold, silver rush: What will people buy this Akshaya Tritiya? – The Times of India


This Akshaya Tritiya, India’s gold and silver markets are heading for bumper purchases, with overall trade likely to cross Rs 20,000 crore even as record-high prices reshape buying patterns. The estimate, shared by the Confederation of All India Traders (CAIT), is higher than last year’s Rs 16,000 crore, signalling growth in value despite a sharp rise in bullion rates.Prices for the yellow metal have surged sharply over the past year, going from Rs 1,00,000 per 10 grams, to Rs 1.58 lakh. Meanwhile, silver has shown a steeper rally, jumping from Rs 85,000 per kilogram to Rs 2.55 lakh per kilogram. According to CAIT, this sharp escalation has not weakened demand, but is instead prompting consumers to make more deliberate and value-oriented purchases.Praveen Khandelwal, member of parliament from Chandni Chowk and secretary general of CAIT told ANI, “Akshaya Tritiya has traditionally been one of India’s most auspicious occasions for purchasing gold… While gold continues to dominate, the nature of purchasing is evolving significantly in response to steep price escalation.”Commenting on customer preference, CAIT national president BC Bhartia highlighted, “There is a clear shift towards lightweight, wearable jewellery, alongside a stronger focus on silver and diamond products. Attractive incentives such as reduced making charges and complimentary gold coins are also helping sustain consumer interest.”Despite the increase in overall trade value, the quantity of metals being sold tells a different story. Pankaj Arora, National President of the All India Jewellers and Goldsmith Federation (AIJGF), an associate of CAIT, explained that the projected Rs 16,000 crore gold trade amounts to nearly 10,000 kilograms (10 tonnes) at current rates. The value, spread across an estimated 2 to 4 lakh jewellers, translates to average sales of only 25 to 50 grams per jeweller, “clearly indicating a sharp decline in volume”.Meanwhile for silver, the estimated Rs 4,000 crore trade corresponds to around 1,56,800 kilograms (157 tonnes), resulting in average sales of about 400 to 800 grams per jeweller during the festival period. “These figures underline a critical shift: while the value of business is expanding due to rising prices, actual consumption is contracting,” Khandelwal said.This gap between value and volume is also reshaping consumer’s buying pattern, with smaller items and lightweight jewellery gaining popularity. At the same time, jewellers are facing challenges due to fluctuating prices, especially when it comes to managing inventory.Even so, festive demand remains steady, with markets witnessing healthy footfall. “Consumers are now adopting a more cautious and pragmatic approach, balancing traditional beliefs with financial discipline,” Khandelwal added.At the same time, it’s not just about physical gold anymore as consumers are increasingly exploring alternatives like digital gold, Sovereign Gold Bonds and gold ETFs, drawn by the promise of liquidity, safety and flexibility when prices are volatile.CAIT and AIJGF have urged jewellers to comply with mandatory hallmarking standards, including HUID certification, and advised buyers to verify the purity and authenticity of their purchases.



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The cost of rising rents: Working four jobs and pushed on to benefits

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The cost of rising rents: Working four jobs and pushed on to benefits



Lauren Elcock is among the young Londoners who say rising rents are forcing them to quit the capital.



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Scams have grown more sophisticated, but people are fighting back

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Scams have grown more sophisticated, but people are fighting back


As governments across the world restricted the movements of their citizens during Covid lockdowns from 2020, people spent more time online. We bought more online and socialised more online, and this brought us closer to the people who want to scam us. At the same time, realistic video impersonations, voices, websites, and texts became more commonplace, and scammers increased their use of social media including WhatsApp.



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