Jamaica's financial regulator is reviewing the average clause insurers use to cut payouts to underinsured homeowners after Hurricane Melissa.
Key Facts
—The review. Jamaica’s Financial Services Commission is examining how insurers apply the “average clause” after Hurricane Melissa.
—The clause. It lets insurers cut a payout in proportion to how far a property was underinsured against its true value.
—The scale. The insurance body says roughly 95 percent of Jamaican homes are underinsured.
—The storm. Hurricane Melissa struck in October 2025 as a Category 5, causing damage worth roughly a third of Jamaica’s economy.
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