CINICO moves into property insurance
(CNS): The government-owned Cayman Islands National Insurance Company, which in March announced that it had extended its offerings to include motor insurance, has now moved into the home insurance business. CINICO is offering parametric insurance to homeowners, either as part of its basic package or as a separate policy.
In a press release, CINICO explained that its parametric Insurance coverage automatically pays out pre-agreed amounts to cover incidental expenses without the need to submit a claim in the event of a hurricane that is Category 3 or above and passes within a specified distance from the Cayman Islands.
This means that after such a storm has passed, homeowners can receive a payment, typically within 14 to 21 days, to help with expenses not normally covered by insurance, such as additional groceries, securing the premises, and cleanup expenses, whether the home is damaged or not.
This new offering from CINICO and the motor insurance are the outcomes of CINICO’s broader expansion plan announced in 2022, which aims to ensure that Cayman Islands homeowners and residents have access to sufficient insurance capacity and coverage in an increasingly vulnerable insurance market.
“We are thrilled to offer home insurance and include Parametric coverage as a standard feature for new policies,” CINICO CEO Michael Gayle. “Outside of the Cayman Islands, parametric insurance cover is sometimes available to home insurance policy owners at an additional cost. However, this benefit will be included for the first time in Cayman as a standard feature of CINICO’s home insurance policies.”
CINICO’s parametric coverage is part of its home insurance package but is also available as a separate stand-alone policy for homeowners with existing home insurance policies, whether insured with CINICO or not, and can be used to offset the impact of policy deductibles.
Gayle is on the Board of the Caribbean Catastrophe Risk Insurance Facility (CCRIF SPC), which provides Parametric coverage to many Caribbean and Central American governments and will pay out more than US$80 million to countries affected by Hurricane Beryl, all within 14 days after passing of the hurricane.
“CINICO is raising the bar in the insurance industry, and fulfilling our promise to bring innovation to the insurance industry,” he said. “Providing Cayman Islands homeowners with reliable and timely support, especially in the face of hurricanes, helps achieve that goal. By including parametric insurance coverage as a standard feature, CINICO ensures that homeowners have access to swift, reliable support when they need it most.”
He also noted that CINICO’s venture into homeowners insurance fulfils its mission as the government-owned insurance company to ensure a resilient insurance sector.
“Reinsurance restrictions have imposed limits on the number of policies that we can issue for the balance of this year, particularly in the face of a potentially active hurricane season,” Gayle explained. “We expect our parametric product to be a successful addition to the insurance market and anticipate having to seek additional capacity in 2025 to meet the demand. Innovation is critical to the resilience of the insurance sector in Cayman and we will continue to look for more ways to improve products and benefits.”
Premier and Finance Minister Juliana O’Connor-Connolly, who holds responsibility for CINICO, welcomes this new advancement in the Cayman Islands insurance market. “A strong and stable insurance industry is vital for the resilience of our islands,” she said. “The inclusion of parametric coverage as a standard feature in CINICO’s new home insurance policy demonstrates a significant step forward in ensuring our residents are well-protected.”
Find out more about the new motor and home insurance policies here,
or call 345-949-8101 or email property@cinico.ky.
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Oh Lord have mercy!!!! They can’t deal with their health insurance properly how do you expect them to deal with this?
I made an enquiry as I am tired of being ripped off. Replacement value is a joke as you only need repairs (normally). Being quoted $27k for a “replacement” of USD $1.5m is ridiculous. CINICO will only offer at the moment up to $1mm KYD sums insured on dwelling. They are hoping to increase next year. It’s all a BIG scam. Their quote was $4k less on $1mm then what IH offered me as a matter of interest.
The local insurance companies are just one event away from becoming bankrupt, Some are consolidating with Bermuda insurance companies whom range amongst the most unscrupulous in terms of transparency and quality of coverage , others are struggling to find reinsurance and are forced to either refuse coverage outright or crafting their contracts to avoid covering anything in case of an adverse event!
Cinico entering the field whilst being extremely under capitalized and being extremely closely tied to the CIG doesn’t bode well IMHO.
As to the transparency of CINICO’s practices as an healthcare insurance provider , let’s just say that I have seen road tar more transparent, one can only imagine that the same practices will be applied !
As to whom is the reinsurer of the risk exposure could be , my best guess would point me to look into the mirror ! 🤣🤣🤣
What could possibly go wrong ?
What about the news headline “HealthCity move into the Insurance Business”?
HealthCity disclosed in their Bombay Stock Exchange filings that it had incorporated a wholly owned subsidiary namely “CAYMAN INTEGRATED HEALTHCARE LTD” …see link below
https://nsearchives.nseindia.com/corporate/NH_30092022161600_NHL_StepdownsubsidiaryIncorporation_30.09.2022.pdf
CIMA website shows that Cayman Integrated Heathcare Ltd. was licensed by CIMA as a local Class A Insurer (Licence #2040835 dated 27 June 2023). Under the Insurance Act local Class A insurer’s can write domestic business (Life, Heath, Property and Casualty and Motor).
The Health Insurance Commission has been a silent spectator. [The Health Insurance Commission is not up to date. For example the website has not uploaded list of insured data since 2022] I wonder if Cabinet is even aware of this or potential antitrust concerns in the public interest.
Cayman has no antitrust rules that prohibit market operators to restrict competition. The result is that we can end up with two large enterprises with their own health insurance: CINOCO and HealthCity. CINICO which requires all civil servants to only use HSA hospital. CINICO is akin to a HMO type insurance plan that usually limits coverage to care from doctors who work for or contract with the HMO (in case of CINICO, HSA which is a CIG entity). HMO’s generally won’t cover out-of-network care…ask any Civil Servant about CINICO policy and why civil servants need a referral from HSA doctor to see a private doctor.
Is Healthcity going to be offering Health Insurance? If so, will HealthCity’s insurance subsidiary require those insured to only use HealthCity hospital?
Healthcity’s PR machine has been silent about this.
Does that mean if we get damage only Public Works can do the repair.
Why would anyone need “additional groceries” after a storm? Do storms make people eat more? I’m genuinely curious.
You ever have your whole family hole up with you before, during, and after a storm? I have many times. For decades.
That’s why.
Try so tell them must bring they own damn food next time.
Why don’t you concern yourself with your own family? I don’t need your help.
Wasn’t offering it. You still haven’t explained the need for additional groceries provided for by insurance cover.
Do you feed them the rest of the year when they are in their own homes?
Nah – but the stores increase their prices 😉
Hi CNS: readers may be interested to know that the photo in your article is the old location of CINICO’s head office. It is now located at Maiden Place on Elgin Ave (previously the MUFG / UBS building).
CNS: Thanks! I had forgotten that.
Makes no difference, it’s still shit.
Who is the lucky landlord?
…when governmnet gets involved with free enterprise, it never ends well……
Most are not sophisticated enough to know how parametrics work and when the CAT 2 does them severe damage, and the parametric is not triggered, watch the politricians step in to pay/buy off the “insureds/woters” at our expense…..
You suggest that the peoples’ money might be used to… *checks notes*… help the people? GASP. If I had pearls, I would surely clutch them.
If you belive that Government is one big Payoola Scheme that is there allow “Government” i.e. Politicians, to “help” people (by that I mean, buy them/their votes off), whether they deserve it or not, wheteher they need it or not – then you exemplify the problem in Cayman.
Why would anyone adequatly insure, when they can (after the fact/loss – “hurricane”) prevail on Govt to pay them or risk their ire at the next election?
The OAG might as well write the report now. It’s as plain as day what WILL happen.
One would think our government would have regulated the existing insurance companies to ensure affordable and dependable insurance is available. Has anyone checked on what retirees pay on property insurances? Nope, they are significantly under insured or not insured at all.
This government on both sides are severely impacting Caymanians which is sad because this is our home. We have nowhere else to go!
Laugh all you want, eventually, and maybe sooner than we might prefer, all mortgage holders in the Hurricane belt are going to be parametric insurance customers. Good to see someone’s awake to climate change risk reality.
We won’t be in the hurricane belt much longer
No one is laughing at parametric insurance. Its great. (In theory.) Since it isn’t tied to valuation (underinsured homes), you know what you’re buying & getting, and you can get it for hard-to-value things/reasons, e.g., a farmer might take it out knowing they will have some crop loss in a hurricane but good luck getting normal insurance for that.
We may cringe at the idea of CINICO offering it since we don’t trust that the bill won’t come back to the taxpayers. And we may quibble eventually about the details of what is offered (haven’t you heard us talk about other insurance companies?). But that has nothing to do with the idea of parametric insurance itself.
What could possibly go wrong.
On paper it sounds good. But the proof will come the day that there are major claims from such disasters as Hurricane, earthquakes and fires.
Where are the guarantees that they will have the ability to pay? As usual a dangling carrot for their supporters to chew on leading up to the general elections.
Government has no business in the property insurance business. It should concentrate on properly regulating those firms already operating locally.
The government doesn’t have to do it for profit like the big rip off boys do. I am very interested in it. The risk business does not take risk anymore. Premiums are amassed for years and when the time comes to pay out they just hike the rates. This could work out well for us. Most insurance companies make you pay for ‘replacement’ value but very few houses need ‘replacement’ after a major hurricane, they just need repairing. My premium does not cover debris removal either and my deductible is 30k. It is all a big legal scam.
Your statements sounds logical, until the local firms jack up their rates by 30%, becasue market rates went up 20%, and the local firms want to make same or more profit on that increase.
When average income people cannot afford private local firm insurance for a home that they still have a mortgage on, who they gonna call?
You sound like you are one of those insurance managers driving around in a benz suv and living on the canal
Are you an insurance broker?
Listen, the primary insurers here in Cayman are one big storm away from failing. Don’t believe me? Check into which insurers are accepting new policies.
Spoiler: NONE of them. What does that suggest to you?
Check again. There are certainly local insurers writing new business. There are a few who are closed but, that is because they have met their reinsurance capacity limits.
Show me.
I’ll be looking into this quite seriously. My home insurance has doubled in the last 18 months. Our brokers simply shrug their shoulders, there is no creativity from them to come up with alternate insurance/risk profile options. This should serve as a wake-up call to them.
That office of theirs isn’t fit for purpose and they still only accept paper claims. They need to get up to date with technology before they expand their insurance offerings. This will be a disaster and they won’t be able to keep up!
You seem a little out of date.
They still mail checks as well, just saying.
Most people don’t understand basic insurance. How the hell does CINICO expect them to understand parametric coverage.
This isn’t going to end well for CINICO, their customers or the government.
Surely it is 100% reinsured?
Maybe using the Civil Service pension fund as collateral ?
Parametric coverage terms are actually a lot easier to understand. What we’re bad at generally is understanding risk (and therefore suitable coverage options).
Instead of dabbling in property and other insurance, why won’t they expand health insurance to cover everyone. At least, to cover retired seniors. Health insurance rates are astronomical for anyone not in a group.
This is an excellent addition to the undisclosed and unreported liabilities of CIG. Been hovering at the $2,000,000,000 mark for way too long now.
i’ve got a bad feeling about this….
This government administration seems hell bent on digging its hole deeper. Accepting considerably more risk and liability by dabbling in the property insurance sector is like steaming into the eye of the storm bound and blindfolded. What could possibly go wrong. Pure and utter idiocy!
now if we can only sort out insurance for the strata organisations thousands more homeowners will appreciate not get ripped off so much. Perhaps JOCC can look into that for us
I hope its feckin affordable! I am grossly under insured as I simply can’t afford to be properly covered. They current insurance rates are shocking.
Would love to know what percentage of the very costly premiums, goes towards actual benefit to the insured, and what percentage goes to fancy offices, and Director/shareholder pockets.
Only a matter of time before they refuse to provide you coverage, as Island Heritage has recently stated doing. Unless of course you agree to their unscrupulous terms.
What they are trying to do is hold hostage customers who have mortgages and as such are required to have insurance. Jokes on them though.
Let’s hope they will offer some competition for the established insurance providers whose main aim is to keep their directors overpaid and over fed.