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WEDNESDAY, JULY 22, 2020
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‘Between rock and hard place’ over 16% slump
By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
A BAHAMIAN insurer yesterday warned that many motorists may be driving with no coverage after suffering a 16 percent slump in auto premium income for the 2020 first half. Tom Duff, Insurance Company of The Bahamas’ (ICB) general manager, told Tribune Business he was “suspicious” that the “double digit” decrease for the six months to end-June had resulted from clients either deferring premium payments - as permitted under the government’s COVID19 emergency powers - or
• Insurer ‘suspicious’ many motorists have no cover • Economy’s ‘dire straits’ make protection-sell tough • Rate rise pressure; reinsurers seek Dorian ‘pay back’ simply electing not to renew coverage. The insurance industry is insisting that those taking advantage of the deferral must first inform their broker and agent to confirm that they qualify, as it is only intended to apply to persons who have lost their jobs and/or income due to the pandemic. However, the ICB chief voiced concern that many have failed to do so and, as a consequence, are driving with no insurance - thereby
exposing themselves and fellow motorists to potentially catastrophic financial losses and liabilities, especially if there are injuries or worse. Mr Duff admitted that the Bahamian insurance industry is “between a rock and a hard place” in trying to encourage clients to maintain home and auto coverage at potentially higher premium rates during a time when “the economy is in dire straits” due to the COVID-19 pandemic, as
illustrated by John Bull’s decision yesterday to permanently terminate 103 workers - some 15 percent of its group-wide staff. Pointing to Hurricane Dorian’s $3.4bn in damages and losses as one reason why property protection should not be included among the “cost-cutting measures” used by households and businesses, he conceded that persuading Bahamians of insurance’s worth is now “a
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Under 1% of BPL disconnect candidates agree settlement By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net LESS than one percent of the 16,000 Bahamas Power & Light (BPL) customers threatened with disconnection have paid their arrears or agreed a payment plan, it was revealed yesterday. Quincy Parker, the state-owned utility’s spokesperson, confirmed in an e-mailed response to Tribune Business that just 78 clients had visited BPL and agreed payment plans across all three categories facing loss of their electricity services. He confirmed that disconnections had already begun for customers who were $500 or more in arrears, and 90 days past due, prior to April 1 and the full onslaught of the COVID19 pandemic plus associated lockdown.
• Just 78 of 16,000 reach terms to keep power on • Nearly 400 already cut-off over bill delinquencies • John Bull’s 15% staff slash exposes challenges “Disconnections began on July 6,” he wrote. “[There were] 362 total up to Friday, July 17. Across all three categories, 78 persons have come in and made payment plans.” The reference to “three categories” reflects that BPL has segmented its delinquent customers into three groups. Besides those who were $500-plus in arrears for 90 days or more pre-April 1, there is also the group who accumulated the same level of debt during the three-month COVID-19 lockdown. The final category are customer who applied, and were approved, for the three-month BPL bill deferral programme
Briland optimistic tourism will hold By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
HARBOUR Island was yesterday remaining optimistic it can retain tourist business that was running at up to 70 percent of preCOVID levels despite having to counter damage created by international media. Joseph Dargavage, pictured, managing partner at Harbour Island’s Romora Bay Resort & Marina, told Tribune Business he and the resort had to field “hundreds of calls” from a concerned
boating and yachting community after outlets such as CNN and the Miami Herald gave the impression that The Bahamas had completely sealed its borders to US visitors. This neglected the prime minister’s confirmation in his Sunday address that charter and private aviation flights, as well as private boats and yachts, will still be able to bring visitors to The Bahamas despite the cessation of commercial air and sea links with the US - a point that Dr
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GB lockdown’s exempt listing missed out hotels By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net
THE Freeport hotel where the government’s COVID-19 health team are staying was yesterday forced to seek urgent clarification it can remain open after not being included among “essential” businesses. Magnus Alnebeck, the Pelican Bay resort’s general manager, told Tribune Business he had to contact the Ministry of Grand Bahama’s permanent secretary for confirmation after the prime minister left “hotels with guests” out of
the sectors and companies permitted to remain open during Grand Bahama’s two-week lockdown. Disclosing that he now expected the resort’s occupancy levels to drop from last weekend’s 30 percent to just three to four percent, with around ten rooms occupied by guests, Mr Alnebeck said: “Since we have the Ministry of Health’s team dealing with all of this staying with us, we raised the question with the permanent secretary whether or not we were exempt because, if not, we would have to shut down.
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implemented at the government’s request. By far the largest group, though, is those who were struggling prior to April 1. They account for 11,399, or 71.2 percent of the 16,000 total customer delinquencies, and are also those at risk of immediate disconnection if they do not settle or agree payment plans immediately. The other two groups, featuring a total of nearly 5,000 households and businesses, now have less than a week rectify their situation after being given until July 28 to come in and settle their arrears or make payment plans. The fact that less than one
percent of disconnectionthreatened customers have moved to preserve their energy supply indicates the depth, and breadth, of the COVID-19 pandemic’s impact on Bahamian businesses, jobs and corporate and household incomes. However, rather than economic hardship, in some cases it could also reflect the failure to heed BPL’s warnings and take them seriously. But, whatever the cause, the potential disconnection of more than 15,000 customers would represent a disaster for those impacted given that they and the economy are so energy-reliant.
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Cruise port stands firm over forecast despite new delay By NEIL HARTNELL Tribune Business Editor nhartnell@tribunemedia.net NASSAU Cruise Port’s top executive says there “is no reason” to alter its forecasts despite the latest delay to the cruise industry’s return leaving no margin for error. Michael Maura, pictured, the cruise port operator/developer’s top executive, told Tribune Business that the Centre for Disease Control and Prevention’s (CDC) decision to extend the ‘no sail’ order imposed on the industry until September 30 should be viewed in a positive light because it could have pushed it out even further. The cruise port, in its recent $150m bond offering, projected that cruise ships and their passengers would return to Nassau starting in the 2020 fourth quarter which begins on October 1 - the day after the ‘no sail’ order presently stands to be lifted. This means that Nassau Cruise Port’s restart forecast has no room for any further “no sail” extension, with the government’s newly-imposed block on commercial air and sea travel between The Bahamas and the US a further potential complication if it remains in place for any length of time. However, Mr Maura said: “While no one wants to see the ‘no sail’ order extended, I guess my perspective is I would look on that position the CDC took on July 16 as being somewhat positive news. It could have extended it much further beyond September given that there’s been such a spike and surge in COVID-19
cases in Florida. “At this point, based on the discussions we continue to have with the cruise lines, they’re obviously committed and need to implement the necessary COVID-19 related health and safety protocols on board their vessels and at their terminals. “In the continued communications we continue to receive from all the cruise lines they are requesting berth availability in October. We have no reason to amend our forecasts at this point.” Nassau Cruise Port, in its bond offering projections, forecast that the cruise industry would return to Prince George Wharf after “six months of nothing” in the 2020 fourth quarter with much-reduced passenger numbers. Some 635,000 cruise arrivals were forecast to come during a final quarter that includes the Thanksgiving and Christmas holidays. “In the first quarter we handled on average 76,000 passengers a week,” Mr Maura told Tribune Business at the time. “In the fourth quarter we’re looking at handling approximately 48,000 passengers a week. That’s after six months of nothing.... “We said we’re going to look at the fourth quarter. I have spoken to, and had the benefit of speaking with, every cruise line that comes to The Bahamas. They say The Bahamas is significant and strategic in their return to the water. “They see themselves calling on The Bahamas first because of the three to fourday cruises, enabling them to offer two to three calls in the same itinerary, and with only one head (departure) tax needing to be paid.”