NASSAU, BAHAMAS — Prime Minister Phillip Davis expressed serious concern about the nation’s continued insurability, noting that rising insurance premiums are becoming unaffordable for residents and businesses while high risks are driving insurers away.
During his remarks at the opening of the Institute of Internal Auditors, Bahamas Chapter Conference, Prime Minister Davis stated: “An area of keen concern is our nation’s continued insurability. As insurance providers and underwriters witness the devastating damage and costs of these climate events, it calls this into question. We fight against a future where insurance premiums are so high that Bahamian residents and businesses cannot afford them, or worse, where the risk is estimated so high that providers do not wish to enter the market.”
He added: “It is clear that greater climate action, both here at home and abroad, is an existential imperative for our country’s key industries – tourism in particular. As internal auditors, you have a fundamental role to play in helping organizations address climate risk. Examining the capacity to operate sustainably within the context of climate change will be key to success. Businesses that do not embrace ESG imperatives risk alienating stakeholders and compromising the integrity of their entire operation. In anticipating risks, advising senior leadership, and providing independent assurance, internal auditors play an instrumental role in making local and regional firms more sustainable, profitable, and resilient.”
The Prime Minister noted that one of the most powerful ways internal audits can strengthen organizations in 2024 is through an analysis of Environmental, Social, and Governance (ESG) activities. He emphasized that as the ESG regulatory environment develops, internal audits are well-positioned to add value by contributing to ESG objectives. He stressed the importance of addressing the magnitude of climate risk and the related financial risks that organizations will face, including business disruptions, supply chain challenges, and serious revenue impacts – not just for companies but for countries.
