cayman compass Your most trusted news source Established 1965 $1 | Funding local journalism | Weekly, 16-22 June 2023 UK investigator looks into house explosion Page 14 Caymanian Kurt Walton to become police commissioner Page 3 Cayman mourns death of Captain Eldon Kirkconnell Page 8 Premier: Cayman struggling with population surge Page 5 Parade, governor’s garden party to mark King’s Birthday Page 10 TOP COPMatinees (matinee price before 6pm) • Seniors $9.00 (Mon-Fri before 6pm) Additional charges apply per 3D/VIP tickets 640-FILM (640-3456) Cayman Cinema@cbcinema6cbcinema6 SATURDAY NIGHT: For your viewing pleasure, minors under the age of 18 will not be admitted to any lm starting after 6pm, unless accompanied by their parent. 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Compass Centre, Shedden Road, George Town, Cayman Islands SEND US YOUR VIEWS OR NEWS: P.O. Box 1365 Grand Cayman, KY1-1108 Cayman Islands Telephone: (345) 815-0095 • Email: newsdesk@compassmedia.ky ADVERTISE WITH US: T: (345) 949-5111 • E: sales@compassmedia.ky • W: caymancompass.com weather Friday Forecast FORECAST Partly cloudy skies with a 10% chance of showers. SEA STATE Slight with a wave height of 1 to 3 feet. WINDS South to southeast at 5 to 10 knots. 88°F HIGH 76°F LOW NEWS EDITOR CAROLINE JAMES ISSUES EDITOR JAMES WHITTAKER HEAD OF SALES CHERYL BIRCH-GILLIES news in brief US visitor dies while snorkelling at Cayman Kai A 68-year-old North Carolina woman died in a water-related incident in Cayman Kai, North Side on 10 June, police reported. The RCIPS said, in a statement on 12 June, that officers and other emergency services were dispatched at 11:05am following a 9-1-1 call. Police said it was reported that the woman experienced a medical emergency while snorkelling in the Cayman Kai area. “Personnel from the Cayman Islands Fire Service and Emergency Medical Services attended the location where they provided urgent first aid and she was transported to the Cayman Islands Hospital where she was pronounced deceased by the attending doctor,” the RCIPS said. The RCIPS did not release the name of the woman. Police are investigating the fatality and are asking anyone with information to call the Bodden Town Police Station at 947-2220. Police investigate theft of 3 boats Police are currently investigating the theft of three boats in separate incidents, all of which happened between Friday 9 June and Sunday 11 June. The first theft was reported on 10 June on Water Street. Police said a 35ft blue and white Suzuki Outboard vessel was removed from its docking area. The incident was reported to the police after the vessel was located and later recovered by its owner at Duck Pond in the North Sound Estates area of Newlands, Bodden Town. Anyone with information on the incident is encouraged to call the Bodden Town Police Station at 947-2220. Following that incident Cayman Brac police officers were alerted to a suspicious vessel on Sunday 11 June which was seen off shore in the White Bay Road area of Cayman Brac. Police said officers were able to identify the vessel as one that was stolen from Grand Cayman, and had been transported to Cayman Brac. Cayman Brac Police officers as well as officers from the Firearm Response Unit were transported on a Customs and Border Control boat, with the assistance of CBC Personnel, to the vessel, where it was searched and towed to the Cayman Brac Police Station while investigations continue. There were no one on board the vessel at the time of search and recovery. Cayman Brac Police is continuing investigations and is asking anyone with information to call 948-0881. Also, on Sunday, 11 June, police said a 16ft South Sea white with blue stripes vessel, was stolen from the Conch Point Road area of West Bay. The vessel was last seen by the owner on Monday 5 June and was discovered missing on Saturday 10 June. This vessel is still outstanding and anyone with information of its whereabouts is encouraged to call the West Bay Police Station at 949-3999. New charges laid against alleged rental scammer A woman at the centre of an alleged rental scam has seen the case against her expand significantly as the prosecution filed dozens of new charges in the Summary Court on Tuesday, 13 June. Judith Douglas, 57, of Bodden Town, initially faced five counts of obtaining property by deception. However, an additional 31 charges were filed minutes before her hearing began, taking the total to 36. “The prosecution will be seeking to file a joinder application to have all charges grouped as one matter,” advised prosecutor Kerri-Ann Gillies, who also noted that it was too early to say whether they wanted the matter to be dealt with in the Summary Court or Grand Court. The charges stem from allegations that Douglas collected cash deposits from multiple people for a rental premises on Diaz Lane, George Town, in February this year. However, those people were unable to move into the apartment or receive a refund. “Ms Douglas is quite anxious to have the matter resolved one way or another. Unfortunately, there is a minimum amount of time that I will need, as I only received disclosure 15 minutes ago and there are some 1,000 pages to go through,” said attorney Jonathon Hughes who is representing Douglas. Douglas was initially taken into custody on 5 March after surrendering herself to police. Since then, she has made several court appearances – all by video link, and no bail applications have been made. When stating that there would be no bail applications during the 13 June hearing as well, Hughes explained to the court that at the time of the allegations, Douglas was out on probation from HMP Fairbanks in relation to an unrelated matter. However, the new allegations have resulted in a breach of the terms of that release licence and as such Douglas was taken back into custody. The case has been adjourned until 27 July, at which time it is expected that Douglas will enter her pleas. Illegal gun importation case hit by further delays A case against a Canadian accused of illegally importing an assault rifle, a shotgun and a handgun has been delayed again, while his lawyer continues to press prosecutors for written reasons as to why they are going ahead with the charges. Anton Parygin, 45, who is a Canadian citizen of Russian origin, arrived at Owen Roberts International Airport on 28 Jan. carrying multiple firearms, according to Customs and Border Control officials. He faces numerous counts of possession of an unlicensed firearm and importation of an unlicensed firearm. However, despite multiple Summary and Grand court appearances over the past six months, Parygin has not entered any pleas. “When we were last here on 28 April… we had stated that it was our intention to write to the Director of Public Prosecution to seek written reasons as to why they decided to charge Mr. Parygin,” James Stenning, who represents Parygin, told the court on Friday, 9 June. Stenning told Justice Roger Chapple that legal commitments in another Grand Court case prevented that letter from being written and delivered to the Office of the Director of Public Prosecutions until 8 June. A boat similar to this was stolen from the Conch Point Road area of West Bay on 11 June. The 16ft South Sea white with blue stripes vessel was last seen by the owner on Monday 5 June. cayman compass 2 N news WEEKLY, 16-22 JUNE 2023RESHMA RAGOONATH rragoonath@compassmedia.ky Kurt Walton will take over the reins of the Royal Cayman Islands Police Service, making him the second Caymanian to lead the law enforcement body. The Police Service Commission announced Walton’s appointment as commissioner of police-designate on 14 June in a press release, saying that he is expected to take up the appointment later this year. Walton, who has served as deputy police commissioner since 2016 and has 36-and- a-half years of service under his belt, welcomed his appointment as he reflected on the task ahead. “I am under no illusion what is required of Commissioner of Police and understand the tremendous responsibility and accountability that comes with the role,” he said in the release. Walton is the second Caymanian in the top job after Buel Braggs, who was police commissioner for two years, before retiring in September 2005. Since his retirement, the post has been filled by a number of foreign officers: Stuart Kernohan, from 2005-2008; David Baines, from 2009 to 2016; and Derek Byrne, the current commissioner, who has served since 2016. Walton: ‘I have a very clear vision to keep Cayman safe’ Government extended Byrne’s contract by four more years back in 2019 and he was set to demit office at the end of September this year. The Police Service Commission said that Walton, who was born in Cayman Brac, was appointed following an open recruitment process. The commission stated that before taking up the post, Walton will participate in professional meetings with various policing bodies within the UK, and also represent the Cayman Islands at the British Overseas Territories Commissioners of Police Meeting. “This period concludes with a comprehensive handover with the current Commissioner of Police, Mr. Derek Byrne,” the commission said. RCIPS Media Relations Officer Jodi-Ann Powery, speaking on the Cayman Compass talkshow ‘The Resh Hour’ on 14 June, celebrated Walton’s appointment, saying, “The Brac is winning.” “I’m immensely proud to say that the next police commissioner is going to be a Caymanian police officer... Mr. Walton is extremely capable, extremely experienced, and I’m very proud of him. [I] also want to thank Commissioner Byrne for his contributions to the islands over the years,” she said. Detective Superintendent Peter Lansdown, who also appeared in the show, lauded Walton’s work ethic. “He’s been a very capable, competent deputy commissioner for some while, and he’s now been selected for the commissioner’s post... congratulations to him,” he said, adding that Commissioner Byrne is leaving the RCIPS ship in a “tidy state”, and Walton will pick up where he leaves off. As commissioner, Walton will head up the Office of the Commissioner of Police, which comprises the Cayman Islands Coast Guard and the RCIPS. ‘Passionate about policing’ The commission stated that Byrne has been pivotal in the succession planning of commissioner-designate Walton over the past few years, including sending him to the most recent training at the US Federal Bureau of Investigations Law Enforcement Executive Development in Virginia. Walton said he was “immensely grateful for the trust and confidence shown in me to lead an organisation with so many hard working and inspiring people”. He added, “I have always given my utmost best in serving my country and the people of the Cayman Islands. I am passionate about policing and it’s been that way over the past 36-and-a-half years. I have a very clear vision and that is to Keep Cayman Safe and to do so, I must understand the threats.” Walton said he recognises the importance of partnerships and will continue fostering existing and new relationships locally, regionally and internationally. “Along with my senior leadership team and our staff, we will continue with our ongoing efforts towards a modernised police service and coast guard which delivers quality services to the people we serve,” he said. Governor Jane Owen, who is the chair of the Police Service Commission, said she was “delighted” to announce Walton’s appointment as commissioner-designate of RCIPS. “He brings a wealth of experience to this important role, and I very much look forward to working with him at this crucial time as we drive to keep Cayman safe and secure,” she said in the release. She added that she was immensely grateful to Byrne for his leadership of RCIPS since 2016. “His commitment to both operational response and strategic planning has built a Police Service ready to meet the challenges of the coming years. Mr. Byrne’s dedication to the people of Cayman, his tenacity in fighting crime and his guidance of all the men and women in RCIPS is a strong legacy from which we will all benefit,” Owen said. Byrne, commenting on Walton’s appointment, said he “warmly” welcomed the news. “I have worked with Kurt for the past seven years where he has been an outstanding, experienced and committed colleague. As a local officer and having served the Cayman Islands all of his policing career, rising through the ranks, he has a unique understanding of the policing requirements of the Cayman Islands. I wish Kurt well as he moves to take on this new demanding and challenging role,” he said. Byrne added that Walton will succeed with “the support of the Government and the support of the community. I wish Kurt great success in the years ahead as he takes the RCIPS from good to great”. Walton is married to Merredith and they have two children, Liam and Adelaide. Caymanian Kurt Walton set to become next police commissioner “I am under no illusion what is required of Commissioner of Police and understand the tremendous responsibility and accountability that comes with the role.” – Kurt Walton Governor Jane Owen congratulates Commissioner-Designate Kurt Walton. cayman compass 3 news N news WEEKLY, 16-22 JUNE 20231234567 89 101112 13 1415 16 171819 20 212223 2425 1234567 89 101112 13 1415 16 171819 20 212223 2425 ACROSS 1 Thug (7) 5 Chain of reasoning (5) 8 Obtained by illicit means (3-6) 9 Light goods vehicle (3) 10 Nonsense (4) 12 Sudden plunge (8) 14 Maker of barrels (6) 15 Scold (6) 17 Begin to understand (6,2) 18 Splendid display (4) 21 Pastry-encased dish (3) 22 Formerly (2,3,4) 24 British soldier (5) 25 Matter of pure chance (7) DOWN 1 Haul up (5) 2 Nocturnal bird of prey (3) 3 Plunder (4) 4 Formal proposal for debate (6) 5 Sharp-sighted (4-4) 6 Make an effort to succeed (4,2,1,2) 7 Admit to be true (7) 11 Covering relatively brief period (5-4) 13 Savagery (8) 14 Aircraft pilot’s compartment (7) 16 Causing death (6) 19 Small-minded (5) 20 Piquancy (4) 23 Chimpanzee for example (3) The Compass Crossword Puzzle The Compass universal kakuro Puzzle 17345 The numbers in the black cells are clues. Numbers above the slash are across clues. Number below the slash are down clues. The goal is to enter digits 1 - 9 in the white cells to add up to the number clues. You cannot enter any digit more than once when adding up to clue. TODAY'S SOLUTIONS Puzzle 17345 ACROSS: 1 Hoodlum, 5 Logic, 8 Ill-gotten, 9 Van, 10 Tosh, 12 Nosedive, 14 Cooper, 15 Berate, 17 Cotton on, 18 Pomp, 21 Pie, 22 In the past, 24 Tommy, 25 Lottery. DOWN: 1 Hoist, 2 Owl, 3 Loot, 4 Motion, 5 Lynx-eyed, 6 Give it a go, 7 Concede, 11 Short-term, 13 Ferocity, 14 Cockpit, 16 Mortal, 19 Petty, 20 Zest, 23 Ape. What they’re saying Online Letters to the editor Of the issues that affect the average Caymanian, none has been more discussed than the incessant traffic. The problem itself needs little description: Caymanians are tired of sitting in their cars. Politicians and members of the public have all presented solutions to this issue, and yet the conversation seems to have stagnated, settling on the same repetitive talking points. Many of the ideas presented thus far have been steps in the right direction, yet have failed to effectively engage with the heart of the matter. Buses are susceptible to traffic themselves, which discourages use, and the countless examples of jammed eight-lane freeways in the United States make it abundantly clear that our mentality of ‘just one more lane’ is unsustainable and has long outlived its shelf-life. Ideas about elevated lanes and bridges too are not much more than a variation on this tired theme. Public transport is the clear solution, but it cannot be roads- based. When a bus is caught in traffic, people opt to drive to be on time, which in turn increases traffic in a self-perpetuating cycle that leaves buses less efficient and less used. We need a sustainable, effective solution which looks past roads. Many drive not by choice, but by necessity. Our urban planning has cemented cars as the only effective means of transport. Recently, Governor Jane Owen called for increased road safety; but how can we be surprised that people drink-drive when a taxi after midnight costs over $50, even for people who live in George Town? We need a kind of rail which can easily be assimilated into our infrastructure. Light Rail Vehicles hold the capacity of a large bus and often run on tracks set in repurposed car-lanes. They have the potential to make four trips between town and the Grand Harbour bottleneck during peak traffic. In addition to all of this, they are completely electric, with no carbon emissions, a crucial step towards a more sustainable Cayman, for a rough figure of slightly under $20 million. Of course, construction will bring its own challenges, but isn’t it time we started thinking past ‘one more lane’? Aiden Watler Time for an electric solution to traffic Governor calls for more responsible drivers as DUIs hit 100 You don’t say. As long as there isn’t some sort of reliable and affordable public transportation, people will keep drinking and driving. Allow Uber in and stop letting the rip-off taxis dictate how to run things. Kirna Ebanks Public transportation over- night is a good solution for this. Natascha Schroll-McLaughlin Surging mortgage rates causing financial havoc for families across Cayman Other than selling one of your kidneys, I don’t know how the younger generation is going to get ahead. In Vancouver, you need $340,000 annual household income to own the average priced home of $1.7 million. Based on saving 10% for a 10% down payment, that would take almost 40 years alone! (source: National Bank of Canada). Colin W. Cabinet to consider single- use plastics ban The problem, of course, is that the worst products are never addressed. Water bottles make up much of the waste. Straws, bags, serving containers and many other products are already available in biodegradable materials. In fact, your own video features a water bottle floating in the sea, first and foremost, yet it’s not on the list of items to be banned. Peter L. I shop at Foster’s Camana Bay and single-use containers are pervasive – not just at take-out areas, but also meat and seafood, and plastic sacks in produce. I started bringing my reusable containers to shop when I moved here a year ago. The irony is that since everything is sold by weight, my reusable containers add weight to the products so I end up paying more for them. Thus, I am being penalised for doing the right thing rather than incentivised. What’s wrong with this picture? Anne Evans Lovely idea alongside promoting recycling; however, recycling bins were overflowing at Camana Bay from not being picked up [in a] timely [manner], and we all know there are no plans to bring back glass recycling. Ten steps back followed by one step forward is simply not acceptable. Dana B. West Bay businesses angry after power cut off ‘without warning’ All residents and businesses affected by the ‘planned outage for up to a day’ should have received notification through multiple channels (mail, phone, email) so all could plan accordingly. Think of the cost to all electrical consumers affected due to the lack of proper notification! Debra Putnam I listen to 96.5 Cayrock most workdays, working from home. I did not hear one such notification of a power outage for West Bay at all on the radio all of last week. Ted N. This is unacceptable. Business owners need to be able to prepare and plan for outages. CUC should be held accountable. The work should also have been done between 1am and 5am to minimise impact. Opinion G. Public transport is the clear solution, but it cannot be roads-based. When a bus is caught in traffic, people opt to drive to be on time, which in turn increases traffic in a self-perpetuating cycle that leaves buses less efficient and less used. cayman compass 4 news N news WEEKLY, 16-22 JUNE 2023WEEKLY, 16-22 JUNE 2023TRUNK SALE SATURDAY, 17 JUNE 6-10 AM COMPASS CENTRE PARKING LOT REGISTER FOR A SPOT TO SELL YOUR GOODS! Registration on Saturday, 17 June: $30 per vehicle Pre-registration: $25 per vehicle Register at community@compassmedia.ky 100% OF REGISTRATION PROCEEDS GOING TO: NEW DATE DUE TO INCLEMENT WEATHER JAMES WHITTAKER jwhittaker@compassmedia.ky The Cayman Islands is struggling to cope with the impact of a surge in population that saw 8,000 new residents arrive on island in the space of a year, Premier Wayne Panton told business leaders Wednesday. Panton said his government was beginning to get to grips with a backlog in work permit, permanent residency and Caymanian status applications. But he acknowledged that the spike in population had brought practical and cultural challenges that were difficult to manage. “This is straining our systems. We certainly have not been prepared to handle a surge of that type,” the premier acknowledged in a speech at the Chamber of Commerce Parliamentary Luncheon at the Kimpton Seafire resort. The most significant increases occurred as the economy resurged after COVID-era lockdowns and border closures, including an influx of 8,000 people between October 2021 and October 2022. That increase follows the arrival of 16,000 new people over the previous decade, he said. The latest population estimate from the Economics and Statistics Office, in the Fall Labour Force Survey for 2022, was 81,546. “That’s a challenge for any society to be able to accommodate and to be comfortable with,” he insisted. Premier: No immigration moratorium in place Referencing recent discussion of moratoriums – which have included a proposal by Cabinet ministers Kenneth Bryan and Dwayne Seymour to temporarily cease granting Caymanian status to people who have been on island for longer than 15 years – the premier acknowledged that there were some who believe “we need to slow down”. He didn’t specify whether he personally supported that proposal however and was adamant there is no current moratorium in place, despite concerns over the slow processing of applications. Panton added, “I think everyone understand the impacts and the issues that (population growth) is generating across the board. With the country in a strong and stable position, we intend to address these issues and deliver even greater, tangible and measurable results.” He said recommendations from the committee reviewing the permanent residency points system were expected to be delivered in September. Nonetheless, he insisted government was moving to speed up the process of handling applications amid a slew of complaints from businesses, particularly about the processing of work permits. Citing statistics that showed almost 3,000 new work permit applications in May, the premier said WORC administrators had processed more than double that number of permits during that time. He said he expected a backlog of around 5,000 permit applications, including renewals, to be cleared within the next few months. He painted a similar picture for permanent residency and Caymanian status applications, insisting all were being processed and that policies were in place to help clear the backlog. State of the public purse Panton recapped some of government’s financial results, insisting Cayman’s finances were in good shape, having recovered from the impact of COVID. However, he acknowledged that government expenditure was growing faster than revenue, and tough decisions would need to be made around budget time. The civil service has also grown rapidly, from 3,918 people working in core government in 2020 to 4,511 by the end of last month – a 15% rise that has contributed to the growing cost of government. While he said government had taken action to help families with the cost-of-living crisis, including temporarily capping CUC bills for 22,000 families and introducing free school meals for children, he accepted some believed this was not enough. But he insisted maintaining sound budgets and not spending recklessly would ensure Cayman’s stability. He said inflation was starting to come down, the US Federal Reserve confirming Wednesday that it would not increase interest rates further and local banks agreeing to a 30-day grace period before passing on any future adjustments from the Fed. More generally, he said, Cayman’s economy was booming, despite well documented cost-of-living challenges. He said the islands had recovered from the pandemic and the key financial services and tourism industries were in good shape. “International business is thriving, hotels are full again, shops and resorts are bustling, and jobs are available up and down the economic ladder,” he said. Speaking later in the event in a question and answer session with Chamber president Nelson Dilbert, Panton said his government was contemplating multi-story housing projects as a means to address home ownership challenges. He added that the Deloitte report on possible public transport reforms had been completed and would likely be released soon. He also gave updates on road projects in the works to deal with traffic. He said he expected a deal for the future of the landfill to be completed shortly. Premier: Cayman struggling with population surge JAMES WHITTAKER jwhittaker@compassmedia.ky Cayman’s cost-of-living crisis is forcing businesses to consider moving key positions out of Cayman, Chamber of Commerce president Nelson Dilbert claimed Wednesday. Speaking at the organisation’s Parliamentary Luncheon at the Kimpton Seafire resort, Dilbert said challenging economic times were putting a strain on businesses. He acknowledged that multiple sectors were doing well and that thousands of new jobs had been added to the economy since COVID. But he warned coveted middle-income positions in certain industries could go overseas as the impact of rising costs starts to bite. High inflation, followed by rapid interest rate hikes, has led to soaring household bills with monthly mortgage payments, rents, utility bills, home insurance and food prices all going up. Dilbert said the cost impact had been felt by businesses too. He said, “It would be irresponsible for me to ignore the worrying trends that are being shared during our council meetings. “Costs have increased in virtually every aspect of business operations - health, property insurance, bank fees, interest rate hikes, fuel prices, labour costs, housing rentals, consumer goods and services, building materials - you name it, the prices have gone up since last year.” He said the net impact was that many companies were outsourcing positions to lower cost jurisdictions. It is understood that this phenomenon is impacting higher paying white- collar jobs as opposed to service industry jobs that require staff to be on island. “This certainly is a worrying trend and we should monitor this closely,” said Dilbert. “Once a company decides to outsource these positions, it is unlikely they will return to the island. That is sad news for Caymanians who are seeking middle income jobs to start buying homes and raising their families.” Premier Wayne Panton also addressed the cost-of-living crisis during his speech, saying Cayman and the world was in “uncharted territory”. He said government was helping as much as it could and would continue to do so while maintaining balanced budgets. Business leader: Cost of living driving risk of brain drain Premier Wayne Panton speaking at the Chamber of Commerce Parliamentary Luncheon on Wednesday, 14 June. - Photo: James Whittaker 81,546 Cayman’s population estimate, according to the Economics and Statistics Office’s Fall 2002 Labour Force Survey cayman compass 5 news N news WEEKLY, 16-22 JUNE 2023JAMES WHITTAKER jwhittaker@compassmedia.ky A significant rise in home insurance premiums is proving to be both a cost-of-living challenge and a climate crisis in the making for the Cayman Islands. Hikes of around 40% in monthly premium costs – on top of mortgage, rent and electricity bill increases – are causing problems for household finances. As we reported last week, the toll of rising bills and stagnant salaries is proving too much to manage for some families. Inflation, interest rate increases and supply chain challenges are contributing to the general cost-of- living pressures. But the niche reasons behind the insurance rate increases are potentially more worrying. Increased storm activity – not just in Cayman but also in the US and the wider Caribbean – has been cited as a key reason for the surge in costs. And with climate change analysts projecting an even greater threat from intense storms in the coming decades, there is potential for costs to increase further and for insurance to be harder to obtain. How much have insurance rates gone up? Home insurance rates are estimated to have gone up by around 40% on average. However, the Compass is aware of condo developments that have seen increases of close to 100%. For condo owners, that is an extra $200-a-month. The cash costs are higher for home owners, with larger properties, but the percentage increases have not been as dramatic. Why are they increasing so much? The primary reason for premium increases in Cayman is the cost of obtaining reinsurance. For the uninitiated, that is insurance for the insurance companies. In a market update, earlier this year, global broker Aon warned that prices were expected to rise between 15% and 30% for policy renewals. It cited new pricing models – factoring in climate change projections – as part of the reason. Robert Muir-Wood, chief research officer with global catastrophe modelling company Risk Management Solutions, told the Compass payout from recent hurricanes had impacted the reinsurance industry, putting an upward pressure on prices. Hurricane Ian, which brushed Cayman before barreling into Florida and the Carolinas last October, was “the final straw”, he said. Large payouts from previous storms in the region, including Dorian, Irma, Maria and Harvey, will also have been factored into the rate increase, he said. What about the supply chain challenges? The cost of raw materials and supply chain challenges, particularly for small islands, has exacerbated the problem. Property consultancy BCQS International reported that building costs have gone up 21% in Grand Cayman from 2020-2022. That directly impacts insurance premiums, which are based on an assessment of the replacement value. Having an outdated valuation won’t help, says Rick Riyat of BCQS. While it might mean your premiums are cheaper, you will find yourself under-insured and saddled with the repair bill if your property is damaged. Those two factors – increased replacement costs and the increased cost of reinsurance – have conspired to create a situation where premiums have almost doubled for some home owners. Why are storms outside of Cayman a factor? A major disaster in the US, like Hurricane Ian, for example, has an outsized impact on the industry. Reinsurers were left with an estimated bill of more than $50 billion after Ian and the cumulative effect of that impact, alongside other recent hurricanes, led to the spike in prices. Cayman is a downstream market that feels the impact of events elsewhere, says Muir- Wood, who first came to Cayman in the 1990s, when government sought advice about a spike in interest rates. At that time, the global market had been hit by a number of events, not just storms. Hurricane Andrew was one factor, but the Piper Alpha oil platform explosion in the North Sea and the Northridge earthquake in California, severely impacted the reinsurance market. Jack Leeland, CEO of Cayman insurance firm Saxon, points out that while recent storms in the region have had an impact, Cayman is at the mercy of global forces. “Inflation, Russia’s war in Ukraine, and an increase in other natural disasters, such as wildfires and floods, have all had an effect.” What has climate change to do with it? Climate change is a factor in the sense that it is believed to be driving extreme weather related events – including storms, wildfires and floods. There’s also global risk assessments, such as the United Nations predictions of more intense hurricanes as the oceans warm, which analysts will factor into the mix when deciding where to offer coverage and at what cost. Aon, in its ‘state of the market’ briefing, noted that industry pricing models had been updated to consider various factors, including climate change. Muir-Wood acknowledged this would likely be a factor, but said specific disasters and the level of pay-outs required (whether linked to climate change or not) were the key determinate of costs in the reinsurance market. There remains some skepticism, however, about how directly climate change links to specific weather events and it is likely that the market will be more responsive to hard losses. What’s the best case scenario? Most analysts expect the increased rates to bring more reinsurers into the market, putting the brakes on the price rises. A relatively benign hurricane season would also assist. “I expect the rates to stabilise,” says Arthur Bogle, CEO of Cayman- based Bogle Insurance Brokers. But he adds a note of caution that many in Cayman will not yet have felt the full increase of the shift in the market, with premium increases only kicking in when annual policies are renewed. “By the end of the year, everyone should have their rates up to the current market. I am hoping that the rates will not continue to increase from there if we have a clean hurricane season,” he added. The Financial Times reported at the end of last year that several key players had stopped writing new property and catastrophe reinsurance business altogether. “That’s usually the cue for capital to come flooding into the market and prices to fall again,” the paper noted. What’s the worst case scenario? An extremely active hurricane season – including another storm that brings severe financial losses to the US – would likely compound the impact of recent disasters, keeping prices high and making insurance hard to obtain in some areas. But the real concern for Cayman, says Muir-Wood, is a direct hit on a par with 2004’s Hurricane Ivan. While that is a frightening prospect for a number of reasons, he cautions that it could have long-term impacts on Cayman’s insurability. “If the market decides that events of that magnitude happen every 30 or 40 years on average, and not every century, then you have a problem, because the market may conclude they can’t actually generate enough premiums to pay for the losses and, at that point, they could withdraw,” he said. He has similar fears for small islands like Dominica and the Bahamas that have had huge impact storms in recent years. That’s very much a doomsday scenario, however. What would be the impact of losing insurability? The consequences for Cayman of not being able to obtain affordable catastrophe reinsurance would be extreme. Investment in Cayman would become far less viable. Banks would be unlikely to make home loans without insurance, with severe impacts for development, housing and businesses. “Cayman has to do everything it can to prevent that from happening,” says Muir-Wood. What can Cayman do as a jurisdiction to prevent that? Obviously, Cayman has no control over the weather. What it can control is the ability of its buildings to withstand a severe storm. Building above sea-level, ensuring new construction is up to a proper wind code, and developing away from historic flood zones are among key actions already happening in Cayman. “The only thing that an island can do is to absolutely focus on driving down the level of vulnerability,” says Muir-Wood. If Cayman can demonstrate its capacity to withstand a severe storm without accumulating massive financial losses, then it should be able to maintain its insurability, even amid an increased threat level from intense storms. While Cayman built back stronger after Ivan, tightening its building code and utilising new construction methods to add resilience, vulnerability still exists in the many pre-Ivan developments. There is already a difficult in insuring wooden homes, for example. What can individuals do? For new home owners, Bogle advises making sure the building is up to modern codes and is at a minimum elevation of at least seven feet above sea level. Limiting the size of a home can reduce insurance costs. How hurricanes and US wildfires impact your bottom line Another hurricane like 2004's Ivan could have a major effect on the insurability of the Cayman Islands. - Photo: File cayman compass 6 news N news WEEKLY, 16-22 JUNE 2023caymannational.com Get your dream car with a 100% loan 1 % (Hurry! Offer available only for a limited time) PERSONAL BANKING | BUSINESS BANKING | FIDUCIARY & INVESTMENT SERVICES | FUND SERVICES Get a loan for a brand new vehicle and you can enjoy: 100% financing Loan term up to 8 years Fixed interest rate of 7% for 5 years Commitment fee waived for hybrid/electrical vehicles 1% commitment fee of loan amount for normal vehicles Talk to our Personal Lending team at +1 345 949-8300 today or email lending@caymannational.com. Offer applies only to new vehicles. Offer available from 13 June 2023. Other conditions may also apply. cayman compass 7 WEEKLY, 16-22 JUNE 2023NORMA CONNOLLY nconnolly@compassmedia.ky Captain Eldon Eden Kirkconnell, founder of Kirk Freeport and former politician, passed away on Thursday, 8 June, at the age of 96. An official funeral will be held for the man who was considered an iconic figure in both the political and business landscape of the Cayman Islands. Speaker of the House Katherine Ebanks- Wilks announced the passing of Kirkconnell in Parliament on Friday morning, 9 June, and lawmakers offered their tributes. Moses Kirkconnell, who like the late Captain Eldon, is an elected representative for the Sister Islands, said his uncle had contributed significantly to Cayman. “He was a good Christian man,” he said, “a good husband, a good father, grandfather and great grandfather, and there was nothing he liked better than to have them all over to his house. To balance out that life, he was a hard worker, with vision.” He added, “He was a good, strong Caymanian man that had his heart in the place of doing good while he was here for the Caymanian people and country. We were each blessed to know him and know of the example that he set.” Premier Wayne Panton said Kirkconnell was a “very significant Caymanian in so many ways, not just as a legislator, but as a father, a businessman, somebody who was an excellent role model and excellent example for Caymanians, and someone who was very forward thinking as well.” He added, “His service to the country in the form of his public service, as a representative of Cayman Brac and Little Cayman and a member of Executive Council, should never be forgotten because it has been immense.” In a separate statement, the premier also noted that Kirkconnell’s death marked the passing of an era. “The period of Captain Eldon’s public service was during a pivotal juncture for these islands, requiring him to participate in many decisions that set the course for an emerging economy and society. He would have sat as an MLA and member of ExCo in what is now Constitution Hall, so when the purpose-built Legislative Assembly was opened on Monday, 31 July 1972, Captain Eldon would have been one of the members to move over from the Town Hall into the new building. Poignantly, he was the last surviving member of the first legislators who took their seats for the first time in what is now the House of Parliament.” ‘Visionary entrepreneur’ In a statement, Kirk Freeport, which Kirkconnell founded in 1972, said, “Today, we mourn the loss of an exceptional leader, a visionary entrepreneur, and a true inspiration to all who knew him. “Captain Eldon’s unwavering commitment, hard work, and ethical leadership have been instrumental in shaping Kirk Freeport, Kirk Market, and the entire Kirk Group of companies. His entrepreneurial spirit and transformative vision have left an indelible mark on our organization and the business landscape of the Cayman Islands.” It noted that, beyond his professional achievements, “Captain Eldon was a beloved figure in our community, known for his generous heart, kindness, and unwavering dedication to making a positive impact.” In Parliament, Ebanks-Wilks read out a brief biography of the late sea captain, politician and entrepreneur, who passed away just three weeks before his 97th birthday. Kirkconnell was born to Captain Charles Gerald Kirkconnell and Olivine Elizabeth, nee Eden, on 23 June 1926 – their third and last child, she said. She continued: “He was raised in Cayman Brac and, as a young teenager, he was sent to Jamaica to attend Munroe College. After graduating, he went to sea on one of his family’s ships. He worked his way up the ranks very quickly. At the age of 23, he got his master mariner’s licence. In 1961, after his father passed away, and having spent 15 years at sea, he returned to Cayman Brac to take over the family business. “In 1963, he and his wife Pat and their two children, Gerry and Debbie, moved to Grand Cayman. He built Kirk Plaza supermarket in 1964. In 1972, he opened the Kirk Freeport Plaza, and through the years opened other successful businesses. “Captain Eldon Kirkconnell served in the Legislative Assembly and the Executive Council of the Cayman Islands from 1962 to 1972, and was awarded the honour of OBE, Order of the British Empire, by Her Majesty Queen Elizabeth II.” She added, “We are thankful to God for Captain Eldon’s life and for all the contributions that he has made to our legislature and to the development of our country.” Decade-long political career Kirkconnell was elected as the representative for the Sister Islands in 1962, when he ran with the National Democratic Party. In the next election, in 1965, he ran successfully as an independent candidate and sat in the Executive Council, the forerunner of Cabinet. He did not contest the next election, in 1968, but was appointed by Administrator Athelstan Long as a nominated member of ExCo. Panton, in his statement, quoted historian and author Roy Bodden, who noted that Captain Eldon’s appointment to serve in ExCo at the administrator’s pleasure was viewed as giving elected members the benefit of a “balanced person” who successfully divorced his political career from his business interests. The roles of nominated members of ExCo were eliminated in the new Constitution, which came into effect following the November 1972 election, marking the end of Kirkconnell’s official civic duty. The following year, he was awarded the Order of the British Empire in Queen Elizabeth II’s birthday honours, for his public service to the Cayman Islands. Panton, who said he knew Kirkconnell well, described him as a “humble and soft- spoken gentleman”, who loved the sea, enjoyed fishing and had a sharp wit and sense of humour. He added, “Indeed, he was classed by many as a consummate statesman, but, those who knew him also knew of his devout faith and service to his Lord. ... He also believed in quiet philanthropy, giving with no desire or recognition in any shape or form.” Kirkconnell is survived by his wife of 68 years, Pat; his son Gerry Kirkconnell; daughter Debbie Guyton; grandchildren and great-grandchildren. To mark his passing, flags were flown at half mast at all government buildings on Friday, 9 June. The date and time of the official funeral have not yet been announced. Cayman mourns death of Captain Eldon Kirkconnell Respected statesman and entrepreneur passes away at age 96 “He was classed by many as a consummate statesman.’ Premier Wayne Panton, commenting on the passing of Captain Eldon Kirkconnell Captain Eldon Eden Kirkconnell, 23 June 1926-8 June 2023 cayman compass news N news WEEKLY, 16-22 JUNE 2023 8cayman compass 9 WEEKLY, 16-22 JUNE 2023Next >