Denis St. Bernard, Contributor
GLOBE INSURANCE Company, the largest Jamaican-owned commercial property insurer in the country, is beginning to distance itself from its competitors by targeting key sectors of the market which need the services of a professionally-run company, said Evan Thwaites, managing director at the recent launch of their "platinium" homeowners policy at the Hilton Kingston Hotel.
The outspoken Mr. Thwaites expressed great concern over the state of the economy. He said that the general insurance sector would be severely hit if there continued to be fall-offs in the productive sector.
"No new business will come on to the books and the existing business will fall off as buying power reduces with lay-offs," said Mr. Thwaites.
Another area of great concern, lamented Mr. Thwaites, is the present regulatory framework which has not been functioning effectively for some time. Many others in the industry have also expressed concern regarding the regulatory framework. It is felt by many that if this existing situation is allowed to continue it would make life very difficult for many of the industry players who would have to suddenly adjust to very high solvency and capitalization standards when the new proposed insurance comes on stream. This has already gone almost two years over its original deadline.
It is quite clear that Globe Insurance is prepared to take a platinum approach to doing business locally.
This was further highlighted by Globe's general manager Michael Gayle in a recent interview on KLAS FM's Risky Business.
Mr. Gayle was upfront with issues such as:
Why do people self insure their houses?Has the insurance market failed because only 30 per cent of the housing stock in Jamaica are insured?What are some of the main impediments to insuring houses and contents of housing?What is the state of the housing stock?Is the cost of insurance too high?Are insurance companies trusted by the man in the street?Do insurance companies speak the language of the people?Is the risk of loss and/or damage remote? Have insurance companies engaged the communities in finding solution to the problems?Have insurance companies engaged the communities in finding solution to the problems?Have creative financing options being researched?In summarising, Mr. Gayle said that Globe is not prepared to be two-faced when dealing with issues affecting the industry. "We were quiet for far too long and it's time to be more proactive and transparent in our operations and the way we do business, as this is what the public demands and deserves", said Mr. Gayle.
Current generation
The Homeowners Platinum Plan is targeted at significant purchasers of homeowners insurance, as it requires a minimum premium of $50,000 (house & contents). In addition to the usual features contained in the current generation of homeowners policies, Globe has sought to enhance this exciting new product in the following ways:
Public liability limit of $10,000,000.Will provide the same limits for Employers Liability and Personal Liability where applicable.Unspecified single article limit increased to 15 per cent of sum contents sum insured.Globe noted that the sliding dollar has made it more difficult for homeowners to keep pace with current values. As such, for policyholders who have made all reasonable attempts to insure for full replacement value at the inception of their policy period, will apply a 75 per cent condition of average rather than the usual 85 per cenr.
All Risk cover on computer and other electronic equipment in the home at same rate as contents. Serial numbers of electronic equipment are also not required. Globe would, however, need model numbers in order to establish age and value in the event of a claim. A commemorative gift of a Homeowners Safety Kit containing a fire extinguisher, a smoke detector, a first aid kit and a flashlight will be given to the first 100 purchasers of this policy.
Denis St. Bernard is an insurance and marketing consultant. He is also the co-host of Risky Business, a radio programme which deals with risk and insurance matters. Feedback by email pri@kasnet.com
