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Today, representatives of insurance companies were collecting food items and supplies at various supermarkets. The collections will be donated to the Liberty Children's home in Ladyville. The activity is just one of many scheduled this week set aside to raise awareness on insurance. But while today's gesture for children in need is regarded as a kind gesture on behalf of the insurance industry, the industry has had its share of criticisms that include a whole range of concerns about the insurance coverage in Belize.

At 7News we have received complaints from business owners especially about the high insurance costs they are required to pay annually. And then on Monday we heard from the President of the Belize Association of Insurance Companies Judy McCutcheon that due to the high cost of health care, the plan is to increase health insurance costs. And then, on Monday during ceremonies officially opening Insurance Awareness Week, guest speaker Glenford Ysaguirre, the Governor of the Central Bank spoke about what he describes as disturbing developments in the insurance industry and winning back whatever confidence may have been lost. The Governor of the Central Bank cautions that first what must be changed is the public's negative perception even if takes some fundamental changes by the insurance industry to get it done.

Glenford Ysaguirre, Governor - Central Bank of Belize
"This week I think they should be focusing on the perception that the public has out there on the insurance industry. Like I said there is a lot of cynicism and distrust with regards to the image and the integrity of the industry. And those were justifiably or otherwise the perception that the public holds based on maybe their experiences they have had out there, maybe a few bad experiences. There is this situation for instance where there was this banner on the overpass which was some customer claiming he didn't get a settlement for his insurance company. That is a black eye for the industry, not only for that company but for the industry and I think it is something that needs to be addressed quickly. And these are the types of things that create that perception that maybe people are not getting a fair shake or not getting value money from the industry.

I raise the issue of adjusters coming in after a loss and saying to you the insurer, after he suffers the loss, ‘well you were not properly insured or you did not have sufficient coverage so the value, you know the value has to be adjusted.' I think there must be a way where the industry can find a way or method to avoid these situations so people know exactly what they are covered for at a particular point in time and that does not have to be assessed in that manner, that you can know from the time your policy exactly what you get and what you are entitled to so whether that would require that a proper valuation be established for the property at the point in time and not leave it at a time because you want to save cost at a time after a loss has been suffered.

For a country that is according to the statistics have a thirty percent poverty rate or there about somewhere in the upper twenties, that means a lot of people in terms of insurance services are marginalized and cannot afford it and that is obvious. And those are probably the people who most need it. Insurance is like providing your own safety net but somehow it is only something that is affordable to middle income and maybe well off people and maybe not even to the extent that they may need to purchase coverage."

Jacqueline Godwin,
"Well I beg to differ there because not even the middle income families are suffering."

Glenford Ysaguirre,
"Well that happens when you have a situation where the economy is in a downturn right. Instead of you have a growing middle class you will start get a shrinking middle class and that is bad sign for any economy."

Jacqueline Godwin,
"Is there anything that the insurance industry can do to lower the cost of insurance so that the people who really need it, especially where healthcare is concerned, will be able to get insured?"

Glenford Ysaguirre,
"Well I am not as familiar with the workings of the insurance industry as I am with maybe the banking financial institutions but I think the same argument hold true that I have held for banks and other financial institutions that if you can improve your efficiency, your operational efficiency, your risk management and everything then it should lower your cost of operations and then you should be able to pass off some of that cost savings to your customers."

On Monday when we asked the president of the Belize Association of Insurance Companies if there is anything that can be done to make insurance coverage available a to all Belizeans she told 7News she believes that is a regulatory issue that should come from the government and not from the private insurers.