Cayman gets it own ICWI

Paul Lalor, President of ICWI making the grand
announcement on Thursday 9 March at the Grand Old
House

Dennis Lalor founder of Insurance Company of the
West Indies (ICWI) and Chairman of the ICWI Group
(centre) chat with Claudette Saint Reid Country
Manager of Sagicor Life of the Cayman Islands Limited
(left) and Camille Hines International Designer (right)
at the Grand Old House on Thursday 9 March

Tuesday,  March 14, 2006

The Insurance Company of the West Indies (ICWI) has announced its entrance into direct insurance underwriting in the Cayman Islands through its licensing by the Cayman Islands Monetary Authority, (CIMA) effective 1 January 2006.

Paul Lalor, President of the ICWI made the announcement at the Grand Old House on Thursday 9 March.

“I hope that we have done just about enough to communicate that ICWI Group has incorporated, capitalized and transferred the Cayman Portfolio of the Insurance Company of The West Indies Limited to our newest subsidiary, the Insurance Company of the West Indies (Cayman) Limited with effect from 1 January 2006, and we are here this evening to formally launch this new company with clients, colleagues and close friends,” he said explaining the company has created an entirely separate firm here.

He said that the Cayman Islands stands to benefit from ICWI having its own balance sheet.

“From a regulatory standpoint this has the advantage of giving the Caymanian, Bahamian and Jamaican authorities knowledge in advance of the levels of reinsurance and assets to cover their respective territories,” he said.

He said that the company’s own introspection and the sentiments expressed on the one hand by the Traill report and on the other by CIMA and Jamaica’s Financial Services Commission led them to conclude, early in 2005, that the most prudent way to protect policyholders was to separate the portfolios and operate local companies in each territory.

Mr Lalor pointed out, “… for our clients in Cayman, the Bahamas and Jamaica independent balance sheets and reinsurance arrangements will offer added protection from any accumulation of losses in multiple territories.”

Mr Lalor was confident that the move was a wise one and would benefit the policyholders. 

“There are those who say that this is not the most efficient use of capital but in the end we in insurance know we only offer one real service…..to pay the claim when we are called on.

“Our Chairman and founder has for 37 years preached the value of being just a little too conservative and this approach certainly paid dividends in September 2004 when ICWI was significantly affected by 4 hurricanes in the space of a month and was still able to record a small underwriting profit,” he said.

“For us no news is good news and the fact that we have had little feedback on our move to create a local company shows, we think, that it is seen as a good move.”

Speaking on the lasting effects of 12 September 2004 the day that after Hurricane Ivan made landfall he said, “None of us likes to reflect on 12 September 2004 but it has certainly changed the life of every Caymanian and I know all of us here who are involved in the insurance business now have a new respect for mother nature.”

He said Hurricanes Katrina, Rita and Wilma and the odd earth tremor have served only to remind us all that we live in a very exotic but risky part of the world.

“I suppose one should not expect the great return of sand, sea and sunshine 365 days a year without higher normal levels of risk,” he pointed out.

“And the predictions are that we will be in a period of heightened hurricane activity for some time to come and therefore none of us should be comforted by the notion it can’t happen again,” he continued.

Mr Lalor said the increased security provided to their policyholders through the creation of ICWI Cayman continue to provide the market with the highest level of reinsurance cover carried by any local insurer, and double the amount ICWI had on 12 September 2004.

Mr Lalor added that the firm may have changed its name and status but it was still committed to bringing customers the same philosophy of conservatism and quality of service.

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