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APRIL 2014

IS OUR COUNTRY ON TRACK?

Jamaica vs the IMFIMF Jamaica vs the

10 INSURANCE FAQ’S

HONORING THE TOP ACHIEVERS CIA awards review

need ce?

Insuran WHAT MATTERS MOST TO POLICY HOLDERS

CEO’S VISION IN MOTION DONOVAN BROWN EXPOUNDS ON CHANCELLOR’S EVOLUTION

THE VISION

A ONE-STOP SHOP

WWW.CHANCELLORINSJA.COM


Content 04 INSURANCE FAQ

Frequenty Asked Question about insurance products and claims

06 Why buy

Insurance

A balanced financial programme provides for immediate cash needs, as well as medium to long term requirements. Let us show you how

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Awards Highlights Honoring our TOP Achievers


We’ve Been There For You For over 40 years, ICWI has provided comprehensive and reliable insurance to our clients throughout the Caribbean.

T H E I N S U R A N C E C O M P A N Y O F T H E W E S T I N D I E S LT D .

moto r • pr o pe rty • mari n e • e ngi n e e ri ng • liabi lity • acci de nt

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FOR MORE INFORMATION PLEASE CALL 1 888 920 ICWI (4294) ::: www.icwi.com


1. If I stop working what happens to my policy? Your only obligation to the insurance company is to contribute your premiums. Most policies have a 30 day grace period, where you are still covered. If the policy has cash values, then premiums will be taken from this amount to keep the policy in force. 2. Can I get back my money when my policy lapses? No you may not, the fact is while the policy was in-force you were covered, and this coverage has to be paid for. 3. How does insurance benefit me?

INSURANCE FAQs 4. How long does my coverage last? The length of time a policy lasts is dependent on the type of plan. They can last anywhere from 5 to 100 years. 5. How does insurance work? The basic concept of insurance is that people all share a mutual risk which is death, whether natural or untimely. By contributing to a fund it provides a benefit to any member of this group who suffers a loss or an illness. 6. When I die how long before my beneficiaries receive the money? Provided that all requisite documents have been supplied, no more than 7 days.

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By giving you peace of mind-- knowing that in the event of illness or untimely death your last expenses will be taken care of including estate duties, that there will be income for the family to live comfortably, that the children will be educated, and that should you live to retirement you will have a nest egg for your sunset years.

7.Can insurance assist in estate planning? Yes, many persons use insurance as a means of guaranteeing their estate has enough liquidity to cover transfer taxes and stamp duties, commonly known as “death taxes� 8 Can my policy be used as security for a loan or mortgage? Yes you can assign some policies as collateral for loans, mortgages etc. 9 Is there a limit to how much coverage I can get? That depends on the needs identified, and the prospects ability to maintain the policy. 10 If my beneficiary dies can they be replaced? Yes a revocable beneficiary can be replaced whenever the insured or owner of the policy wishes.


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Contributor: GLENDON GORDON V.P MARKETING GUARDIAN LIFE

Why buy Insurance IN INFLATIONARY TIMES YOUR LIFE INSURANCE POLICY CONSTITUTES ONE OF THE MOST IMPORTANT FINANCIAL INSTRUMENTS IN ANY PERSONAL FINANCIAL PORTFOLIO AS IT BALANCES THE PORTFOLIO. A BALANCED FINANCIAL PROGRAMME PROVIDES FOR IMMEDIATE CASH NEEDS, AS WELL AS MEDIUM TO LONG TERM REQUIREMENTS.

Planning

saves the family •

Is self-completing, if you become totally disabled or dismembered in any way.

Provides catastrophic illness cover (Cash)

Provides Terminal Illness Benefits

Provides education for children

Creates, manages and distributes property

In essence, life insurance is the most versatile and unique product available for the challenges people face in inflationary periods.

Life Insurance is one dollar doing the work of many dollars as it: •

Takes care of your family if your main breadwinner dies prematurely, causing loss of income and suffering to families.

Takes care of you if you live too long (brings dignity, peace of mind and security to old age.)

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The type of insurance plan coverage and the amount of investment/savings are determined by the individual needs, affordability, age and the stage of life cycle and personal circumstances. Whatever life insurance solution is required; it can be customized and plays an important role in the individual achieving long term financial security.


Whether it is emergency dollars or protection dollars, inflationary trends can have a negative impact on ones financial plans without adequate insurance coverage. Inflation can be defined as a decrease in money’s purchasing power overtime. At inflation rate of say 5%, today’s $1000.00 will be worth only $614.00 in 10 years. This erosive power means it is expensive to live. This economic fact makes it important that persons understand that the life insurance product is an option that provides a hedge against the inflationary impact in many ways.

product, the individual also has the opportunity to benefit from a mix of investment funds, in which to invest in order to hedge against inflation without doing it personally. This investment benefits from the compounding impact of investment returns or interest overtime. This makes the insurance product/ coverage when properly determined, the most unique, versatile and holistic product to have in and out of inflationary periods. Have you reviewed yours recently?

PLANNING

SAVES!

A Life insurance product is unique, in that it is a product where one can project the impact of specific inflation rate overtime and determine the adequacy of that coverage which would be needed to replace income loss due to premature death of the breadwinner. The method used to do this is called “Indexation”, which can be applied from inception to the growth of the coverage annually or upon review. This method can also be applied to the saving element also. Both protecting the purchasing power and hedge against the inflation impact on dollars. During inflationary periods the value/cost of assets tend to increase. This affects the amount of cash required to cover estate duties and taxes. The insurance coverage adequately “indexed” is the product that can provide this cash needed during inflationary periods, where someone’s time horizon is cut short due to death, critical illness or accident which renders the person disabled. The same principle is applied to the rising cost of education or even basic living expenses. Where someone intends to self-insure by only saving in an institution and hopes time is on their side, this person will have only what was saved with interest to pay if there is untimely death or critical illness before the time horizon is achieved. The insurance coverage with savings adequately indexed, would have paid what was intended to be saved, a most profound principle of life insurance. Through the lump sum payment, it protects the dreams of persons, preserves the value of the property for loved ones or restores the value and dignity of life if one lives too long. From a straight investment point of view, with an insurance

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CIA BOSS shares his views Interview with Donovan Brown President & CEO - Chancellor Insurance Agency Limited Q: How would you describe Chancellor Insurance Agency?

Becoming a CEO is the greatest leap that an executive can make in his or her career. What makes it such an extraordinary transition, of course, is the complexity of the role and the skill that is required to manage that complexity successfully. Recently, Miguel Gonzales caught up with the very busy Mr. Donovan Brown, C.E.O. of Chancellor Insurance Agency Limited — the leading agency in Jamaica for the past six years, for a brief chat.

A: Chancellor is a multi-lined agency that deals with all facets of the insurance industry. Q: How did it come into being? A: The concept for Chancellor has always existed, however it was accelerated due to a need to bring out my creative energies and drive that I had stored up. I have always thought I had an independent mind which would only flourish if allowed to be free. I had a desire to transform the independent agency sector to have it become a strong distribution system for life and general insurance, thus providing opportunities for many

who might otherwise not have been able to obtain employment from the two primary principals. Those companies bottom line can increase significantly due to outsourcing agencies like Chancellor. Q: You are now in your sixth year where do you see the company in another six? A: Though our success has been notable, I do believe there is a great deal more that can and needs to be done. Developing other departments can provide economies of scale that will go a far way in improving the profitability of the company and ensuring another successful six years.

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Interview with Donovan Brown President & CEO - Chancellor Insurance Agency Limited contd Q: Is your vision to create a “one stop shop” of financial services?

• Knowing that nothing great has ever been achieved without enthusiasm.

A: In a manner of speaking, yes. The plan is to have a consortium of Financial Services. This vision is being realized with establishment of Meridian Mortgage Brokers and Finance Limited and the aquisition of Caribeean Loss Adjustors Limited (CLA). I believe each is poised to make a tremendous impact in 2014 and beyond.

• My ability to focus on the vision with passion and to communicate that to the stakeholders.

Q: Describe a typical day, what style of management is used.

• An empowered and highly motivated management teams.

A: People who know me well will tell you that I work long hours. I get very little sleep, but when I am on the job, I am very awake.

Q: If you could instantly change any aspect of your business, what would it be?

While it is key for me to understand the everyday activities of the organization and how all the different elements of the organization fit together to move forward I believe in maintaining and empowering a highly trained management team that is fully capable of discharging and handling their given tasks. This enables me to remain focused on the primary duties of increasing revenues, and meeting the goals identified in the mission statement. Q: What do you attribute success to? A:These can be enumerated as follows: • Belief in one self. 10 – The Chancellor 2014

• The appreciation of operational details. • Awareness of industry trends- Being cognizant of our partners’ strategic direction.

A: If I could change instantly any aspect, it would be to make Chancellor a one-stop financial services institution where we are able to provide for our valued clients all their insurance and other financial needs in a jiffy. Q: How do you manage poor performance? A: We are a performance driven business which dictates the need to set parameters and time oriented objective at regular intervals. If one is unable to meet those objectives in a timely fashion, then decisive change will be made to preserve the integrity of the company’s vision and promise to its clients. One must be decisive in making changes to encourage and foster an environment of targeted goal achievement.


Q: How do you reward excellent work? A: Rewards are a powerful method of encouraging performance. Rewards and recognition, when used effectively, can encourage employee morale and help to boost a healthy competitive culture. Our top achievers and those who go beyond the call of duty are showcased and rewarded at our Annual Awards Ceremony. However, the simple thank yous, writing letters of appreciation are not neglected as they form part of the daily routine to acknowledge strides. We are after all in the business of recognition, which we believe fosters production and maintains a competitive spirit.

Q: What is your personal work ethic and how does this affect the company culture? A: Our clients are our most valued resource hence the culture and work ethic within Chancellor is driven by our values. Our people are the key to Chancellor’s continuing commitment to deliver on our promises. We are a corporately responsible business and we promote integrity, tolerance, teamwork and inclusion. We work hard, we love to break records, we love being #1 and we love to celebrate our achievements.

Q: What’s the biggest challenge you feel your company faces and how do you inspire your employees to meet it head on? A: The biggest challenge we face as a company is really to find the right people for the job. Highly motivated and goal oriented individuals are not in abundance. Therefore we encourage our employees that there is only one direction to move, which is up. By feeding the employee’s mind with good and positive mental vitamins we are able to develop individuals who are able to face the daily challenges head on making the best of any given situation.

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CIA 2013 TOP TEN Awardees 12 – The Chancellor 2014


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CIA 2014 Awards Breakfast HIGHLIGHTS 14 – The Chancellor 2014


Chancellor Insurance Agency’s Awards Celebration: From left: (seated front) Shelly Wilson – Rookie of the Year, Lorna Smith – Unit Manager of the Year, Omar Miller – Agent of the Year, Donovan Brown- President & CEO, Kadian Taylor - Policy Delivery Award, Pathrine Brown – MDRT Mentee, Shaneke Richards - Most Improved Customer Service Rep (Middle Row) Cheryle Archibald – Individual Line Admin of the Year, Michelle Parke – Case Leader Award, Melissa Gayle – MDRT Mentee, Nardia Wedderburn – Century Club Qualifier, Lorraine Russell – General Department Admin of the Year Award, Kacia Jarrett – MDRT Mentee, Sonia Sinclair-Newell – Century Club Qualifier, Keith Lemard – Executive Agent of the Year, and MDRT Qualifier (Back Row) Angelleta Aquart – Century Club Qualifier, Simone Scott – Individual Line Admin of the Year Award, Robert Brown – Long Service Award, Javon Bailey - Staff Choice Award, Christine Russell – Orphan Unit Lead Member Award, Clive Heslop - Long Service Award

Shelly Wilson is all smiles as she accepts her trophy from Mr. Hugh Meredith, Unit Manager, Sagicor, for being MDRT Mentee Qualifier.

Patrick Sinclair – Branch Manager, Sagicor Life congratulates Michelle Parke as she accepts her award for Top Brokerage House Cases Record Breaker.

Mark Chisholm - Executive VP, Sagicor Life poses with Lorna Smith as she receives the Unit Manager of the Year award.

Donovan Brown, President & CEO, congratulates Keith Lemard as he collects his award as the Executive Agent of the Year.

President & CEO Donovan Brown is pictured here with Agent of the Year Awardee, Omar Miller

Ainsley Beckford collects the Conservation award from Joan Kenyon, Retail Risk Manager - BCIC

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Photograph: Jermaine Barnaby Editor: McPherse Thompson

Jamaica 3rd IMF TEST Dr Peter Phillips, minister of finance, planning, and public service, giving an overview of Jamaica’s performance in the third quarter of the IMF programme, at the joint Ministry of Finance/IMF press conference at National Heroes Circle, Kingston, on Thursday, February 13. Beside Phillips is IMF Mission Chief Dr Jan Kees Martijn

Finance and Planning Minister Dr Peter Phillips said the Government strongly believes that the next phase of the fouryear programme with the International Monetary Fund (IMF) should focus on the growth agenda.

which conducted the third review, said Jamaica has met all the quantitative and indicative targets for the quarter to December 2013, as well as all structural benchmarks.

He said the Government, therefore, “agrees with the IMF that further and more expeditious improvement in the business environment is needed for sustainable growth”.

Economic activity is tentatively estimated to have expanded by about 1.4 per cent year-on-year in the last quarter of 2013 and remains broadly in line with the IMF’s projections, Martijn said.

Addressing a press briefing at the ministry’s office in Kingston on Thursday, the minister said, however, that “there is an urgency to create a more enabling macroeconomic environment, which would be supportive of stronger investor confidence”.

He added that execution of the government Budget for 2013-14 has been broadly on track, notwithstanding shortfalls in tax revenues owing, in particular, to weak domestic demand, but overall policy implementation under the programme remained strong.

At the briefing, IMF Mission Chief Dr Jan Kees Martijn, who led the team

“Provided that performance remains strong, board consideration of the third

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review of the programme could take place towards the end of March and, upon approval, about US$71 million would be made available to Jamaica,” said the mission chief. Phillips said the March quarter, which constitutes the fourth under the IMF agreement, will be challenging given the programme of work, parliamentary agenda and “the very steep targets.” The IMF mission, which conducted the third review between February 5 and 13, discussed the Jamaican Government’s strategies to meet the March benchmarks and slight modifications to the strategies, he said. “We are resolved that with the continued support of our partners and stakeholders these targets will be met,” the finance minister said. Phillips said that some of the major issues the mission and the Government identified for the programme going forward were the macroframework, design and implementation of a fiscal rule, tax reform and administration and, most importantly, accelerating economic growth. “Notwithstanding the challenges, broad understandings have been reached on these issues and, correspondingly, on the text of the supplemental memorandum of economic and financial policies and technical memorandum of understanding,” he said. The minister said the Government also saw the next phase of the programme as one of consolidating the gains thus far. “Consequently, with continued support of the multilateral development partners, we will be pursuing major reforms - public-sector financial management and overall public-sector modernisation, fiscal rule, omnibus banking (and) reforms to the securities dealers sector for which work is well advanced,” Phillips said. The Jamaica Gleaner - Jamaica To Focus On Growth Agenda After Third IMF Test . Retrieved from: http:// jamaica-gleaner.com/gleaner/20140214/business/ business2.html

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THE CHANCELLOR 2014