By McPherse Thompson, Staff ReporterTHE BANK of Nova Scotia (BNS) Jamaica has now established its own general insurance brokerage, a move that will allow it to sell policies on behalf of the island's 13 major general insurance companies.
William Clarke, managing director of BNS Jamaica, in launching the new entity, Scotia General Insurance Brokers, said the Financial Services Commission (FSC) last month granted approval for a change in status of the Bank's insurance arm from an agency to a brokerage.
Speaking during the launch at the Jamaica Pegasus Hotel, New Kingston on Friday, Mr. Clarke said the brokerage firm would be going after the larger clients seeking insurance services, and therefore the new entity would serve to heighten competition in the market.
He explained that the brokerage was an expansion of services offered by Scotia Jamaica Insurance Agency, which was established in 1989 as a wholly-owned subsidiary of BNS Jamaica, but which had been legally restricted to sell policies for a few insurance companies because of its status then.
In 1991, Scotia Jamaica Insurance started operations as an agent of British Caribbean Insurance Company, offering motor vehicle, house and contents insurance under the brand name, Scotia Safety Cover. Later, the number of agents grew with the addition of NEM Insurance Company, Insurance Company of the West Indies (ICWI), Globe Insurance Company and West Indies Alliance Company.
With the new status, Mr. Clarke said, Scotia General Insurance Brokers "will allow us to broker for any company we choose in the marketplace."
The company will now be focusing on all classes of general insurance requirements of large entities such as the government, commercial businesses, as well as the reinsurance market especially in the United Kingdom.
"We will try and package the best service in the local and international market as far as reinsurance is concerned," said Mr. Clarke, noting that a number of brokers in the market might feel threatened by BNS' entry in the business. "Our entrance in the business is going to create a new dynamism," he said. "We intend to and will compete vigorously in the market, and we are confident that the very experienced team in place will make a difference," said the BNS managing director, who is also chairman of the bank's insurance brokerage firm.
And Joyce Beadle-DeSouza, general manager of Scotia Jamaica General Insurance Brokers, said that with the change from an agency to a full brokerage firm, they could now access the wider local as well as the international marketplace. She said her primary focus would be to increase the company's efficiency and bring a fresh perspective to insurance brokering. Both Mrs. Beadle-DeSouza and Mr. Clarke said the staffing and managerial requirements of the brokerage have been upgraded to meet the change.
As a broker, the company will be able to access all of the island's general insurance companies to obtain market information, facilitate placements in the overseas market, and tender on government accounts.
