Prudence N. Barnes, Gleaner Writer
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MOSS-SOLOMON
AS THE Caribbean region braces itself for a hyper-active hurricane season, James Moss-Solomon, newly-elected president of the Caribbean Association of Industry and Commerce (CAIC) has urged Caribbean businesses to plan effectively for natural disasters such as hurricanes.
Hurricane Dennis, the first hurricane system of the 2005 Atlantic Hurricane Season, last week caused severe flood damage in Jamaica, also leaving a trail of devastation in its wake in Haiti, Cuba and parts of the United States. Last year, Hurricane Ivan wreaked havoc in the region racking up $35.9 billion in damage to Jamaica, according to Government estimates, and destruction of catastrophic proportions in the Cayman Islands.
"If this is a natural order of things, then we need to plan for it," Mr. Moss-Solomon said adding "that we know that for fact Hurricanes do happen in Jamaica, it is not a surprise."
He noted that companies needed to implement disaster plans and be prepared to do whatever it takes to mitigate the effects of a disaster, as well as reduce and cover their risks.
"These are natural things to plan for. If you need to build appropriately for a hurricane zone do that; if you need to take precautions like we do to avoid major risks-do it; if you need to put roller shutters in your place to close up your place when a hurricane is coming, do it," Mr. Moss-Solomon stated.
Mr. Moss-Solomon who is also chief corporate affairs officer at GraceKennedy, stated that his company has had a disaster plan in place for 16 years and had not suffered a major loss since Hurricane Gilbert in 1988, adding that such planning required discipline.
"Risk is a normal part of business. For example in our company here, it is a sovereign need that companies are to be fully insured and if we find you as a managing director of one of the companies not fully insured, you will lose your job.
" Find a way to be profitable. But you have no option to refuse to insure your company in the interest of a short-term gain," he stated.
HIKE IN INSURANCE PREMIUMS
Since Hurricane Ivan, insurance premiums have risen between 15 and 40 per cent according to one report attributed the head of the Jamaica Association of General Insurance Companies.
The CAIC president said that if companies wanted to be profitable and competitive, the insurance
premium was not something they should take out of their business expenditure.
"There is hurricane, there is flood, there is civil unrest sometimes, there is fire and all those kinds of things," he said, underscoring the point that companies should not attempt to save by not insuring or under-insuring.
"Every risk has a decision; are you going to cover it yourself or not," he added, citing the comparison with persons who choose third party insurance over the ideal of full coverage of their motor vehicles.
He cautioned against operating businesses and residences in low-lying areas, citing serious risks from storm surges to sections of Jamaica including housing developments like Portmore.
Mr. Moss-Solomon further noted that Caribbean businesses were not the only entities that faced disaster, as companies in every part of the world had their own climactic realities and risks to deal with.
"Our office in Canada has to deal with snow storms. Snow storm is a reality if you are in Toronto. And they have to have heating in the place and air conditioning in the summer," Mr. Moss-Solomon
stated.
Companies in the region could view the fact that they do not have to expend on heating in the winter as a competitive advantage, he said.
Mr. Moss-Solomon was elected President of the 50-year-old CAIC in June 2005, the regional body which represents Caribbean businesses and carries out advocacy, lobbying, and making recommendations to CARICOM and other efforts to promote the development of business in the Caribbean.
