Dyoll Insurance Company Limited cancelled all of its insurance policies Thursday.
The Cayman Islands Monetary Authority was advised of the action by the Jamaica-based Dyoll’s temporary manager, who said the company was unable to continue the provision of insurance cover to policyholders and was obliged to terminate all insurance policies with immediate effect.
In order to protect Cayman policyholders of Dyoll insurance, British Caymanian in conjunction with Cayman Insurance Centre, which was Dyoll’s agent in Cayman, made a provision for coverage for a period of 10 days at no additional cost.
‘We’re basically offering a 10-day grace period,’ said British Caymanian’s Carl Brown.
Policyholders are, however, required to go to the offices of the Cayman Insurance Centre to complete the required forms, Mr. Brown said.
Dyoll had inadequate reinsurance to deal with more than $100 million in claims resulting from Hurricane Ivan.
Last month, in light of Dyoll’s financial difficulties, CIMA suggested Cayman policyholders of Dyoll insurance consider alternative coverage.
‘Alternative coverage is particularly important to those holding motor policies because of the requirements of the Motor Vehicle Insurance (Third Party Risks) Law (2004 Revision),’ CIMA stated at the time.
According Mr. Brown, that suggestion is no longer an option.
‘They have to get new coverage,’ he said. ‘They can’t drive around with a worthless piece of paper.’
Dyoll was placed in provision liquidation by Cayman’s Grand Court last Monday. CIMA has been advised that the Financial Services Commission in Jamaica will also be applying to the Jamaican Courts for the liquidation of Dyoll.
Dyoll sold its Jamaican portfolio but no sale of its Cayman portfolio has been finalised.
Policyholders who take advantage of the 10-day grace period will not be bound to stay with British Caymanian Insurance as a condition of the temporary coverage, Mr. Brown.
‘We’re inviting all of the client’s to come in and review they’re options,’ he said.
Mr. Brown said British Caymanian was offering the service because it showed good corporate cooperation, and because it made good business sense.
‘We are a partner in the insurance market place,’ he said. ‘As much as you see an adversarial relationship in a marketing sense, there has to be some cooperation and synergies in an industry sense. Insurance companies share risk.’
Dyoll’s troubles aside, British Caymanian has no problem helping Cayman Insurance Centre.
‘C.I.C. is a financially healthy company and because of that, we have no qualms about developing some sort of cooperation with them,’ he said.