CINICO plans to roll out expanded health insurance coverage later this year, before making those offerings available to local retirees six-to-nine months later, the company’s chief financial officer told lawmakers this week.
The government’s Finance Committee on Wednesday approved a $5.35 million equity injection into the Cayman Islands National Insurance Company, which is in the process of expanding its health insurance coverage, as well as delving into the field of property and vehicle insurance.
CFO Frank Gallippi told committee members that CINICO would first expand its health insurance offerings beyond the current Standard Health Insurance Contract plan, known as SHIC, and then roll out a new plan for retirees.
Gallippi said CINICO would be rolling out the motor vehicle insurance side this year, and the property side in 2024.
He added that CINICO was not aiming to compete directly with private insurance companies on health insurance coverage. Instead, he said, it would be “offering a product that has slightly higher benefits than the current offerings that we have”.
The $5 million equity injection is strictly for property and casualty, he said, with the additional $350,000 for the health insurance side.
Explaining the need for the equity injection, Gallippi said CINICO had been trying to get adequate reinsurance coverage to guard its capital and risk from the property-insurance perspective, saying reinsurers and the Cayman Islands Monetary Authority wanted to see that the company has a “proper capital base”.
“It has been quite challenging, in the sense that, given the catastrophes over the last few years, the reinsurance market has really tightened up in the Caribbean. The prices have gone up, which has led to insurance rates going up as well. They’re not writing any more new business [this year],” he said.
Asked if CINICO’s new health offering will mean people would be able to access medical facilities outside of the Health Services Authority system, Gallippi said the company was working on building provider networks outside of the HSA, which would include other hospitals and doctors.
CINICO is the government-owned health insurer for 10,200 public servants and pensioners, 1,100 seafarers and veterans, 1,800 indigents and 2,000 members of the Standard Health Insurance Contract plan, known as SHIC.
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