The Controllers of BAICO have announced that they have come to an arrangement with Island Heritage Insurance in order to protect existing BAICO property insurance policy holders.
Under the arrangement BAICO policy holders will be offered new insurance cover on substantially the same terms by Island Heritage.
The action was taken after the controllers were informed on September 21 that a large share of BAICO Cayman’s insurance cover had been cancelled by a major reinsurer.
As a result BAICO was no longer in a position to offer effective property insurance.
In order to protect BAICO policy holders from the lack of coverage the controllers, Simon Whicker and Kris Beighton of KPMG, turned to Cayman-registered insurer Island Heritage.
Under the terms of BAICO Cayman’s property insurance, policies can be cancelled by either BAICO or the policy holders by giving seven days notice.
The controllers said in a press release that letters had been sent to all of BAICO Cayman’s property insurance policy holders last week.
The letters explained the decision to cancel existing policies and provided instructions on how to obtain equivalent cover with Island Heritage Insurance.
Agents of policy holders are continuing to contact all policy holders to inform them of the terms of the alternative arrangement.
Policy holders can obtain immediate property insurance cover by signing a new policy and paying the first insurance premium instalment at either BAICO Cayman’s or Island Heritage’s offices.
Any unused portions of insurance premiums paid to BAICO Cayman will be repaid to policy holders by BAICO, the press release said.
The controllers urge existing property insurance policy holders, who have not done so, to contact their local agent or BAICO Cayman immediately.
Kris Beighton, Joint Controller said: ‘The difficulties arising from BAICO Cayman’s reinsurance situation on the property book meant we had to expedite a substitution process to an alternative insurer for this line of business to prevent significant exposure to our policyholders.
‘We’re obviously delighted that, through our working relationship with Island Heritage Insurance and the Judicial Manager of BAICO in the Bahamas, and the significant assistance and support of CIMA, we have managed to effect an immediate solution to provide protection to our local policyholders,’ Mr Beighton said.
After having transferred BAICO’s property insurance portfolio to another insurer the attention of the controllers is turning now to the remaining parts of BAICO Cayman’s business.
The Cayman Islands Monetary Authority had put BAICO under controllership on 11 September due to the deteriorating financial and operational situation of the insurance company and its parent company CL Financial Limited based in Trinidad and Tobago.