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16th Annual Insurance Education Conference




Insurance Education Conference

of the Association of Insurance Institutes of the Caribbean NOVEMBER 6TH - 9TH, 2013 Grenada Grand Beach Resort, Grand Anse, St. George’s, Grenada


Insurance And You In A Climate Of Change

Association of Insurance Institutes of the Caribbean

Mission Statement • To promote the Establishment, Development and Growth of Insurance Institutions in the Caribbean territories utilizing the Resources and Infrastructure of the various Institutes. • To promote the Linkage for the Development of Education throughout the territories. • To establish Strategic Alliances with other organizations that have similar objectives. • To seek recognition as the rating body for Insurance Professionals operating in the Caribbean territories.


16th Annual Insurance Education Conference


Association of Insurance Institutes of the Caribbean

WELCOME Dr. Hon. Keith Mitchell Prime Minister of Grenada

The Government and people of Grenada are pleased to welcome you to our beautiful Spice Island, as you participate in the Association of Insurance Institutes of the Caribbean’s 16th Annual Education Insurance Conference. Your theme for this year’s conference “Insurance and You - In a climate of change” could not be more appropriate. The changing times now require our region to change the way we do business, and the way we communicate. The onus is on us to ensure that we are not left behind in this knowledge-based era. It is my hope that the delegates and trainees take full advantage of the much-needed educational tools provided through this conference, to facilitate the region’s e-transition, and to enhance the insurance sector. I urge you all to take some time to explore our beautiful island, to enjoy our local foods, to savor our peaceful environment and to experience our local culture. Best wishes.

Dr. Hon. Keith Mitchell Prime Minister of Grenada


16th Annual Insurance Education Conference

WELCOME Hon. Alexandra Otway-Noel Minister of Tourism, Civil Aviation & Culture

I am delighted that the Insurance Institutes of the Caribbean is holding its 16th Annual Educational Insurance Conference here in Grenada; ‘the Spice of the Caribbean’. It gives me immense pleasure to welcome each participant to our shores. I hope the beauty of Grenada and the hospitality of our people will make your stay and Conference a memorable, enjoyable and successful one. As you can see, Grenada is quite a beautiful and picturesque country which I believe will serve well to inspire you at the Conference. As the Caribbean Community journey’s towards making the Region a single space, it is important for organizations such as insurance companies to have cohesive policies, common training and unified procedures. This is sorely needed so that our peoples can move and live seamlessly from country to country and enjoy the sameness of insurance operations. The role of the Association of the Insurance Institutes of the Caribbean is therefore, quite an important one. This 16th Annual Educational Insurance Conference, while geared toward further educating you in the latest trends in your field, will also expand your opportunity to network with colleagues and others. It is my hope, therefore, that while here in Grenada; you will bond with new colleagues and make new friends, from Grenada and across the Region. I am confident that the Insurance Institute of Grenada will prove to be excellent host and I want to congratulate them on this achievement. I encourage you to take some time to explore the country by visiting some of our sites. It is also essential for you to acquire some of our aromatic spices and our very special organic chocolates.

Hon. Alexandra Otway-Noel Minister of Tourism, Civil Aviation & Culture


Association of Insurance Institutes of the Caribbean

WELCOME Mr. Randy Graham President, Insurance Institutes of the Caribbean

Dear Delegates, On behalf of the Association of Insurance Institutes of the Caribbean (AIIC), the Insurance Institute of Grenada, and the organizing committee of this year’s conference, I would like to welcome you to the Spice Isle of Grenada and to the 16th Annual AIIC Educational Conference entitled “Insurance and You - in a climate of change”. Over the next few days, we expect that you will be exposed to a unique learning environment where managing change within our insurance industry will take center stage. The topics and presenters have been handpicked to provide a unique blend of academia and industry experience. I must thank the organizing committee and all stakeholders who have given their time and experience in planning this event. Pulling such a wonderful conference together in such a short time took a mammoth effort and we are truly grateful to all volunteers who have worked assiduously to ensure that all delegates have an educational, worthwhile, and cultural experience while in Grenada. The AIIC takes great pride in educating the insurance industry in the Caribbean by offering certification courses in several areas covering technical insurance theories in life, health, and general insurance. The AIIC is seeking to expand its course offerings to meet the growing demand for education in the sector and we intend to work with all stakeholders to ensure that the educational content matches the changing and dynamic needs of our insurance companies. The AIIC intends to partner will all insurance companies to ensure that our courses remain relevant and help to improve the capacity of staff so that overall company productivity increases. We look forward to working with you in this regard. The AIIC remains a vibrant institution which puts education first and seeks to assist with the building of member institutes so that the institutes grow from strength to strength within their local territories. My fellow directors continue to give yeoman’s service to ensure the AIIC’s continued focus on education and I thank each and every one of them for their support. In closing, we take this opportunity to thank you delegates once again for being a part of the 16th Annual AIIC Educational Conference. We hope you have an enjoyable experience with us and we are sure you will thoroughly enjoy the Spice Isle! Randy Graham President


16th Annual Insurance Education Conference

WELCOME Mrs. Pearly Charles President, Insurance Institute of Grenada

On behalf of the Insurance Institute of Grenada and the Conference Committee, I extend a warm welcome to all attendees, delegates, colleagues and friends from the various Insurance Institutes and the insurance industry across the Caribbean. This year, Grenada has the distinct honor to organize and host the AIIC sixteenth Annual Insurance Education Conference, November 6th to 9th 2013, under the theme “Insurance and You – In a climate of change”. The aim of these conferences, is to have continued dissemination of the highest available quality of insurance education to our members across the region, so that, we will always be up-to-date with the newest and most innovative techniques to enhance our personal and professional growth, thus ensuring continued development of our human resource capital, as we endeavour to serve humanity in various vocations. As a nation, we Grenadians are very proud of the legendary beauty of our country with its many natural attributes namely – Grand Etang National Reserve, our unspoiled rainforest and diverse flora and fauna, our sparkling waterfalls, the world famous Grand Anse Beach, with its glistening white sand and revitalizing cool turquoise waters. The hospitality of our people cannot be over-exaggerated. Likewise, our much talked about spices – nutmegs, vanilla, pimento, cinnamon, cloves, bay leaf, cocoa, turmeric and not forgetting our arts and crafts - all available to you in our various shops. We have put considerable time and effort in organizing this function. As your host, we are extremely pleased that you took the time off to be with us. We warmly and graciously welcome you and wish everyone a very successful and enjoyable conference. God bless you and enjoy Grenada! Pearly Charles President IIG


Association of Insurance Institutes of the Caribbean

Association of Insurance Institutes of the Caribbean Executive Members

Randy Graham President

Ulric Miller Immediate Past President

Melisa Gallego Treasurer, Belize

Valerie Sebastian Secretary, Antigua

Yvette Ingraham Bahamas

Anil Singh Guyana

Annette Rothbotham Jamaica

Ruth Lake St. Lucia

Simonne Goodluck 1st Vice President, St. Vincent


16th Annual Insurance Education Conference

16th Annual Insurance Education Conference Committee Members

Kennie John

Emond Lewis-Mitchell

Keith Renwick

Andrea Clarke

Joseann Lashington

Cyril Phillip

Ellen Roseman

Molly Roberts

Bernard Wilson

Robert Whyte

Pearly Charles President - IIG


Association of Insurance Institutes of the Caribbean Mr. Randy Graham is currently the Director of Insurance & Pensions at the Financial Services Commission in Barbados. In this position, Mr. Graham leads the technical evaluation of all matters related to regulation of the insurance and occupation pension industry. He recommends approval of all licensee registrations for domestic and captive insurers and provides technical advice to policy and legislation developers regarding the effectiveness of the legislation. Mr. Graham administers comprehensive programs to assess risk and communicates with registrants in the event of non-compliance with legislative provisions and regulatory guideline’s issued by the FSC. Mr. Graham is responsible for the strategic planning of the department and for setting performance standards.

Mr. Randy Graham Msc. Bsc. BCI Director of Insurance & Pension Financial Services Commission - Barbados

Prior to joining the FSC, Mr. Graham was the General Manager for a local insurance brokerage firm and also a risk management consultant. Mr. Graham is a Finance Lecturer at the UWI Cave Hill School of Business and teaches various courses including Risk Management, Investment Analysis, Portfolio Management, Managerial Finance, and International Business. He also lectures for the Barbados Credit Union League and the Insurance Institute of Barbados. He has conducted several insurance related training seminars across the Caribbean. Mr. Graham is a trained Risk Manager and a graduate of the Southwest Missouri State University with Suma Cum Laude honors and a degree in Insurance. He holds a Masters of Science Degree in Risk Management from St. John’s University in New York. His awards and scholarships include the Spencer Education Fund Scholarship, St. John’s University Graduate Research Grant, and the Dean’s Distinguish Scholar Award. Mr. Graham was the first person in Barbados to be conferred as a Barbados Chartered Insurer. Mr. Graham is the President of the Association of the Insurance Institutes of the Caribbean, a Past President of the Insurance Institute of Barbados and Past Chairman of the Supervisory Committee of the Barbados Public Workers Credit Union. Mr. Graham is the Corporate Secretary of the Board of Directors of Pasea Holdings Inc. as well as a member of the Board of Directors of Invest Barbados. He is a member of Beta Gamma Sigma Honor Society, the Golden Key Society, the Barbados Golf Association, and the Carlton Cricket Club. Randy is married and he and his wife Maria have one daughter.

Cecil R. Jaipaul is an Associate Chartered Insurance Institute, Fellow, Chartered Insurance Professional, Associate in Risk Management, Chartered Insurance Operations Professional, Master Insurance Business Analyst, Certified Fire and Explosion Investigator and Certified Fraud Examiner. He started his insurance career while working in the insurance department of the Guyana Mining Enterprise. Cecil is the President of Jaipaul Consulting Inc. For more than twenty years he has been teaching insurance, human resources management, dispute resolution and fraud awareness and prevention. He has a Bachelor of Education in Adult Education and is a paralegal, licensed by the Law Society of Upper Canada. Cecil R. Jaipaul

Cecil has been involved with the Association of Insurance Institutes of the Caribbean (AIIC) as a conference presenter and author of the Property Insurance Contract Coverage, the Property Insurance Underwriting and Claims, and Liability Insurance manuals. He also facilitated many seminars for the Insurance Institute of Saint Lucia Inc., Insurance Institute of Antigua and Barbuda, the Insurance Institute of Guyana, the College of Insurance and Professional Studies (Jamaica), and other institutes in the Caribbean. 10

16th Annual Insurance Education Conference Roderick Clarke received his early education in the United Kingdom prior to attending the University of the West Indies at Cavehill, Barbados and Mona, Jamaica. He entered the insurance industry in 1970 where he was employed with Julian R. Hunte/ West Indies General Insurance Company Ltd. until 1989 and Minvielle and Chastanet Ltd. from 1989 to 2004. Roderick was Assistant Manager and Manager from 1989-1993 and 1993 - 2004 respectively. He was appointed General Manager of M&C General Insurance in 2004, a position he held until he retired in 2010.

Roderick Clarke

Mr. Clarke is a Chartered Insurance Practitioner of the Chartered Insurance Institute of the UK (ACII) and a founding member of the Insurance Institute of St. Lucia where he served in several capacities including president. A firm believer in and strong supporter of insurance education, Roderick was the representative of the Insurance Institute of Saint Lucia to the Association of Insurance Institutes of the Caribbean (AIIC) during which time he played a pivotal role in ensuring the longevity of the organization and served as secretary for many years until he retired from that position. Mr. Clarke is also a Past President of the Insurance Council of St. Lucia. His hobbies are reading, soccer, farming and jazz.

Ms. Michelle Chase currently holds the position of Manager, Property & Casualty Division of NEWIM Life & General Assurance Company, Grenada, West Indies. Her responsibilities include the supervision of the Customer Service, Underwriting and Claims departments. She also handles Litigation and Conservation matters. Ms. Chase’s career in insurance begun in Guyana and spans over twenty (20) years. She has worked at companies such as the Guyana and Trinidad Mutual Fire and Life Insurance Company, Demerara Mutual Fire Insurance Company, Apex Insurance Brokers and P&P Insurance Brokers Ltd to name a few. During this time, she has attained valuable knowledge and insight on the insurance industry.

Michelle Chase

Ms. Chase has completed studies at the Chartered Insurance Institute and the University of Guyana and has attended many seminars and conferences on insurance and management related matters. Over the years, Ms. Chase has served on several committees, including the Insurance Institute of Guyana, the Insurance Institute of Grenada, the Board of Governors at the St. Rose’s High School, and various Parent Teacher Associations. She also tutored students preparing for insurance exams through the Insurance Institute of Guyana.

Ruth Laurent-Lake has been involved in the insurance industry for over 30 years in both Saint Lucia and Trinidad and Tobago. She lectured both part time and full time at the now defunct Academy of Insurance in Trinidad and Tobago for several years. She is presently involved in insurance training in the region and provides a variety of insurance services to the industry.

Ruth Lake Lecturer, Defunct Academy of Insurance -Trinidad & Tobago

She has served on the AIIC board since 1997 in various capacities and spearheaded the launching and development of the examination programs currently being offered by the AIIC.


Association of Insurance Institutes of the Caribbean Mr. Kennedy Roberts is from Petite Martinique, Grenada. He has been working with St. George’s University since September 1998 and has taught several courses in the MPH and MBA programs including Health Policy and Management, Health Planning and Financing, Health Policy Analysis, Leadership and Management in Public Health, Managerial Economics and Health Economics.

Kennedy Roberts

He obtained a BSc in Economics from the University of the West Indies (UWI) and an MPH degree from Boston University. Before coming to SGU, he worked within the Grenada Public Service from 1981 to 1994, during which time he performed several functions including being the Health Planner and Ag. Permanent Secretary in the Ministry of Health, and Ag. Director, Budget and Planning Division in the Ministry of Finance. Between 1994-1997 he worked as the Health Economist at the Organization of Eastern Caribbean States Secretariat based in St. Lucia, where he pioneered the promotion of National Health Insurance in the Eastern Caribbean. Mr. Roberts has been involved in several other areas of activity including being a Senator in the Upper House of Parliament in Grenada, the Chairman of the National Insurance Board, a member Board of Directors of the Grenada Electricity Corporation (GRENLEC), Board Member of the Grenada Save the Children Agency (GRENSAVE), Grenada Planned Parenthood Association and the Caribbean Family Planning Affiliation. He has a working knowledge of Spanish and is a Level 2 REIKI practitioner.

Fellow of the Life Management Institute Associate Insurance Regulatory Compliance. Adept change manager with special experience in leveraging IT. Highly successful track record in Customer Relationship Management. Strategic Management and Scenario Planning. Progressive and successful IT career in T&T’s first indigenous and among the largest insurance companies. Well known among the Professional Institutions as the Industry steward and champion of improved standards (insurance and finance) – President of the Trinidad and Tobago Insurance Institute; Past President of the local LOMA Society of FLMI’s and 1st VP of the Association of Insurance Institutes of the Caribbean.

Ulric Miller

Graduated from the ANSA McAL Leadership Development Series, an intensive ninemonth (9) programme which was custom designed in collaboration with the University of the West Indies (UWI). A member of the Knowledge Team who was given special recognition for the best project submitted in the Leadership Development Programme. Overseer several AML/CFT training programs for TATIL Life’s staff. Responsible for Compliance, AML/CFT monitoring and all aspects of communication with Regulatory entities.


16th Annual Insurance Education Conference Shonette Inniss-Hoyte began her Insurance Career on the 4th September 1995 when she joined the GTM Group of Insurance Companies at its Head Office in Georgetown, Guyana. Throughout the years she served in various departments within the Group and has acquired a wealth of knowledge in both Life and General Insurance. In September of 2010 Mrs. Inniss-Hoyte took up the appointment of Branch Manager, GTM Grenada, a position which she holds to date and prior to which, she served as the Group’s Assistant Life Manager. Shonette Innis-Hoyte Bsc Econ, FLMI, ACS Branch Manager - Grenada GTM Group of Insurance Companies

Mrs. Inniss-Hoyte holds a Bachelor of Social Sciences Degree in Economics (BSc Econ) from the University of Guyana and during her tenure with the Group managed to qualify as a Fellow of the Life Management Institute (FLMI) and as an Associate in Customer Service (ACS). Notwithstanding her career achievements Mrs. Inniss-Hoyte prides herself in maintaining a healthy family life. She is a wife and the proud mother of three handsome Sons. She firmly believes that ‘life is what you make it, so if you fill your hearts with the regrets of yesterday and the worries of tomorrow, you would have no today to be thankful for. Therefore the mistakes of yesterday are gone, tomorrow will never come, so let’s be thankful for today!’

With almost 20 years experience in Insurance Company Operation and Reinsurance Management in the Caribbean and USA, Richard Strachan earned his Bachelor’s Degree in Business Administration (with honors) in Insurance and Actuarial Science from Howard University Washington, DC. Former Operations Manager at Trans-Nemwil Insurance (G’da) Ltd., he is currently a major Shareholder and Managing Director of Netherlands Insurance Company (WI) Ltd., a former Subsidiary of a Dutch Company, Trans-Care NV. He has attended several technical conferences on insurance and has been a resource person at seminars in insurance. A former P. R. O. of the Association of Grenada Insurance Companies (AGIC), he was instrumental in leading key issues to the Government on Insurance Regulation. He is currently Chairman of the Road Safety Committee of AGIC. Richard Strachan

He has served on the Grenada Board of Tourism since September 1997 and was asked to assume the chairmanship in April, 2001 to 2004 and then again in 2008 to 2011. He has represented Grenada at International Conferences, Seminars, Symposiums and Trade Shows in this regard, and is a key negotiator for alliances with International Airlines and Tour Operators. A former President of the Rotary Club of Grenada, he was Rotary’s Assistant District Governor for Grenada on three occasions, and has received two Rotary International Awards. He is a classically trained Pianist, and as a hobby is Organist at the Great Organ of the Scots Kirk in St. George’s. Appointed as Honorary Consul for Norway to Grenada, Mr. Strachan is married to Attorney-at-Law Margaret Wilkinson and they have two children.


Association of Insurance Institutes of the Caribbean QueenAnnie has over 20 years of experience in the field of education. She began teaching at the secondary level and eventually, expanded into the tertiary level. Her passion for the Arts and especially Communication has led to her involvement and training of young adults in the areas of Public Speaking, Choral Speaking, Debating and Drama. From 2004 – 2009, she served as St. George’s University’s first Staff Writer at the True Blue campus. During her tenure there she was involved in research, writing and editing materials for print and electronic publication. From 2002, Ms. Gill expended herself working with the deaf community in Grenada. She subsequently became skilled in American Sign Language and served as an interpreter in private, academic and public settings. For the past six years she has been an assistant examiner for the CXC - CSEC English A examinations. QueenAnnie Gill

In 2010, Ms. Gill completed her Master of Science degree in Media, Communications and Development at the London School of Economics and Political Science. Her thesis research explored the role of contemporary Grenadian Theatre in Grenada’s developmental project. Presently, she is a Communications Lecturer within the Department of Humanities and Social Sciences at St. George’s University’s, School of Arts and Sciences. Her courses include: Public Speaking, Introduction to Mass Communications and Introduction to Radio Production.

This is the story of a person who lives and breathes insurance in the Caribbean. Under his stewardship, Demerara Mutual’s Revenue grew from G$1,081 million in 2003 to G$1,790.3 million in 2012. Total Assets of the Society grew from G$5,286.6 million in 2003 to G$11,028.7 million in 2012, and Claims Paid from G$189.7 million to G$360.8 million during the same time frame. He became the Society’s CEO in a dark year, the year of 9/11, when the “future looked dim, daunting and disturbing” as he puts it in his first CEO’s report in the 2001 annual accounts. Due to the terrorist attacks on the USA, tourist arrivals in the Caribbean all but dried up, affecting the economies in which Demerara Mutual operates severely.

Keith N. A. Cholmondeley, BA

And times remained challenging. Strong hurricanes battered the islands, the most devastating of them Hurricane Ivan in 2004, which affected in particular Grenada most adversely. Guyana and the other territories were plagued by adverse weather conditions, which affected crops, and when in 2008 the global financial crisis set in, compounded by the regional CLICO debacle, virtually every person in the Eastern Caribbean and in Guyana felt its effects. However, undaunted, this man indeed had a mission - to carry on the century-old values of the Society while modernizing and streamlining its processes; to continue to provide financial security and safety to Caribbean families with new and innovative products that serve the changing needs of its customers; and to create a well-trained and motivated employee base that gains satisfaction from their jobs and whose excellence of service keeps the Society’s customers happy and creates returns for its shareholders. His mission particularly focused on building the Demerara Mutual brand. Having served as the Society’s Marketing Manager for five years prior to his appointment as CEO, he ensured that the “DM” brand maintained and expanded its relevance to a new generation. As such, he oversaw the development and roll-out of a new suite of innovative insurance and investment products described on page 5 of this report. He also ensured that the Society’s communications are always fresh and surprising for the public, 14

16th Annual Insurance Education Conference bringing both entertainment and education that generations can share. With the introduction of the DM website and Facebook site, the Society increasingly used electronic media to complement its more traditional channels of communications. This man with a mission is Keith Cholmondeley, whose career in insurance (after graduating from universities in Canada, the USA and Puerto Rico) began with Rookie of the Caribbean in 1972, spanned work in a number of Caribbean insurance and trading companies in Guyana and Trinidad and Tobago, and carried him to be today not only the CEO of DM, but also a Past President and Director of the Insurance Association of the Caribbean and the President of the Insurance Association of Guyana. Glendon Langaigne has over 15 years of experience in technology and product management with industry-leading companies. He is skilled in leading technology teams through challenging transition periods working under pressured deadlines to pave the way for positive long-term results. He is currently employed by LIME as Regional Head of Customer Solutions Delivery. He is also a part-time lecturer at the St. Georges University in areas of Computer Security, the elected President of the Information Technology Association of Grenada (iTAG) and provides advisory services on ICT to both the Private and Public Sector in Grenada.

Glendon Langaigne


Association of Insurance Institutes of the Caribbean

Conference Theme: Insurance and You – In a climate of change –


9:00 – 10:30

Roderick Clarke

Saint Lucia

The session will examine the main Principles of Insurance which were established 200 - 300 years ago such as underwriting, risk shifting, pooling, and claims settlement and looks at the variations and developments in the sector over the years and how these developments have impacted the main insurance principles. The question to be answered is, ‘Have the developments in the insurance sector changed the principles of insurance?’

10:30 – 10:45 Tea Break 10:45 – 12:30 What’s Driving Through The Intersection Of Insurance and Technology? In a transformation of the way insurance is priced, many major insurers are introducing programs that use technology to price your policy, based in part on tracking how many miles you drive.  The pool of individuals using this technology will grow larger and larger. The pool that remains behind will be smaller and represents higher average risk. While a number of insurers ponder if and when to enter the Usage Based Insurance (UBI) marketplace experts say, insurers that don’t adopt the new technology - called telematics - could find themselves losing policyholders to companies that do as drivers look for ways to lower insurance costs. Are these factors enough of a business case, or are we missing something?



The more things change the more they remain the same...

12:30 - 1:45

Lunch Break 16

Cecil Jaipaul

Insurance Consultant

16th Annual Insurance Education Conference

Thursday 7th (continued) 1:45 – 2:15

Meeting changing Customer expectations in Life Insurance The session will review the existing life insurance sector and will detail what customers are now expecting in a life insurance product. The session will also discuss how life insurance companies are adapting to the changing expectations to ensure that they maintain and grow market share in this environment.

2:15 – 2:45

Meeting changing Customer expectations in Health Insurance The session will review the existing health insurance sector and will detail what customers are now expecting in a health insurance product. The session will also discuss how insurance companies offering health insurance are adapting to the changing expectations to ensure that they maintain and grow market share in this environment.

2:45 – 3:15

Meeting changing Customer expectations in General Insurance The session will review the existing general insurance sector and will detail what customers are now expecting from the various general insurance products. The session will also discuss how insurance companies offering general insurance are adapting to the changing expectations to ensure that they maintain and grow market share in this environment.

3:15 – 4:30

National Health Insurance – Due or Overdue All people aspire to receive quality, affordable healthcare in a manner that respects their rights and personal dignity. In recent years, this aspiration has spurred calls for Universal Health Coverage (UHC) and has given birth to a global UHC movement. In 2005, this movement led the World Health Assembly to call on governments to “develop their health systems, so that all people have access to services and do not suffer financial hardship paying for them”


Keith Cholmondeley

General Manager, Demerara Mutual Life, Guyana

Shonette Innis-Hoyte

Branch Manager, GTM Group of Companies

Richard Strachan

Managing Director, Netherlands Insurance Co. (WI) Ltd.

Kennedy Roberts SGU Professor

Association of Insurance Institutes of the Caribbean

Thursday 7th (continued) With the rapid rise in medical care costs, the ability to afford medical care is no longer a problem only for the poor. While private health insurance mitigate the problems some individuals face in meeting the high cost of medical care, they have failed to protect all people from the consequences of large medical bills. Since the system of private health insurance coverage has failed to protect all people from the consequences of large medical bills, the goal of national health insurance is to ensure that no family is forced to endure genuine financial hardship in obtaining needed medical care.


Rhum Runner Cruise Assembly point – 6:00 at lobby of the Grenada Grand Beach Resort for transportation pick-up at 6:15


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a policy to do more

16th Annual Insurance Education Conference

9:00 – 10:30

Insights into Underwriting and Claims Performance Measurement Performance measurement in the underwriting and claims sector is critical but complex and can pose many challenges for managers who are charged with overseeing both the financial health and overall impacts of their organizations. This dynamic and informative presentation will make the case for performance measurement and provide a practical framework to consider for any organization.

Ruth Lake


Michelle Chase, Cecil Jaipaul, Roderick Clarke, Panelists

Stream A – Underwriting Stream B – Claims

10:30 –10:45

Tea Break

10:45 – 12:30 Breakout Sessions:

Many insurance companies struggle with strategy execution, leading to sub-optimized organizational performance and inconsistent business performance results. One of the critical factors driving this result is unclear accountabilities for, and leadership of, the strategy formulation, execution, and management process. By developing a high level of capability and comfort with business strategy concepts, tools and processes, insurance leaders are uniquely qualified to fill this role. This workshop looks at the skills and confidence you need to play a key role in strategy formulation, execution, and management processes across your organization.

Randy Graham

Director of Insurance & Pensions Financial Services Commission, Barbados

OR 2. Ethics vs Compliance - Combatants of Corporate Governance The battlefield of Corporate Governance is littered with bodies or organizations and individuals faced with the decision to do the thing right or to do the right thing. Here you will get a chance to decide what you would do ……


Ulric Miller

Chief Risk Officer Guardian Life


1. Business Strategy and Performance Management Essentials



Association of Insurance Institutes of the Caribbean

12:30 - 1:45

Lunch Break

1:45 – 3:00

Breakout sessions: 1. New Paths to Learning: Emerging Trends in Learning and Development

Glendon Langaigne LIME Rep

Are you making the most of technology to facilitate learning? As technology and workplaces change, the way we learn needs to adapt to meet the new needs of your employees. Classroom learning and traditional inhouse courses aren’t sufficient on their own anymore, but what replaces it? From social media and mobile technology to gaming and virtual tools, there is a lot to learn and there are lots of tools available. This workshop will help you decide which tools are right for your organization.



2. The Secrets of Professional Presentations



It is often said that the ability to present an idea is as important as the idea itself. As businesses focus more on developing their own talent, having employees who are able to deliver persuasive, engaging, and professional presentations is quickly becoming an essential skill. In this informative, interactive session you will discover practical ways to communicate and persuade. Learn how to deliver effective, convincing presentations. Become skilled at the art of selling complex ideas to stakeholders. Gain confidence in building consensus and commitment among your audiences and your co-workers.

3:00 - 3:15

Tea Break

3:15 - 4:30

Closing Programme Evaluation forms Certificate presentation AIIC Award presentations


Mix & Mingle – at Sunset View Grand Mall Assembly point – 6:00 at Lobby of the Grand Beach Resort for transportation pick-up at 6:15 20

QueenAnnie Gill SGU Lecturer

16th Annual Insurance Education Conference

Visit to the Underwater Sculpture Park And enjoyment of other water sporting activities - snorkeling, kayaking, water volley ball and water trampoline. Assembly point – Lobby of the Grand Beach Resort 8:15 at which time the bus will depart.

OR 9:00

Mandoo tour (full day tour) Assembly point – Lobby of the Grand Beach Resort 8:45am Tour bus will depart at 9.00am from hotel. Stops: • Annandale falls and garden • Grand Etang rainforest and crater lake • Drive through the farming community of Birchgrove where the spice trees will be visible - nutmegs, cinnamon, cloves etc. • Visit to the oldest functioning rum distillery • Local cuisine lunch • Levera National Park, Pearls old airport. • Scenic view of the eastern coast passing through the fishing villages. • View from Fort Frederick of St. George’s and the surrounding areas.

Underwater Sculpture Park

- the first of its kind in the world. One of the main tourist attractions in Grenada. Recognized as one of the “Wonders of the World – Earth’s Most Awesome Places” in a special edition of National Geographic, the Park is located just outside St. George’s in the Molinere Bay Marine Protected Area.






Association of Insurance Institutes of the Caribbean

Changing Conduct Regulators in the Caribbean are anticipating more convergence in the financial services sector. What does this mean to market conduct practices? By Cecil Jaipaul

The main thrust of Motor and General insurance regulatory lobbying in recent years has been the contention that Motor, Home and Business insurance is separate from other financial services industries in its risk protection, as opposed to wealth accumulation, focus.

market conduct?’ Motor and General insurance is one of the most highly regulated industries in financial services. But as a consultant specializing in this area, I suggest that the regulatory process be more interactive, as oppose to sanctions fines and penalty driven.

Regulators are willing to concede this reality, but are still looking at the bigger picture of convergence in the global financial services industry.

With limited resources, the focus is, it appears, on the little guy who lied on his application for a salesman’s license. In the future, this will surely change.

In some jurisdictions, insurance supervisors have acknowledged the general insurance industry concerns about distinctions in the broader financial services industry, but emphasize that their government is committed to pushing ahead to reflect the increasing reality of global integrated financial services and to ease “red tape”. Some regulators have noted that there are just as many similarities and differences between life, general insurance and banking. Convergence, it seems, is the theme that is here to stay with the region’s regulators and decision-makers.

Know thy regulator

So one of the big questions facing the industry today is; ‘How will this affect


Regulators are most concerned about industry practices and actions that have adverse and unfair effects on policyholders and claimants. For example, in Jamaica, the Financial Services Commission’s Market Conduct Guidelines on Best Practice for Motor Insurance Claims state that strengthening the integrity of the claims settlement process is important both for promoting public confidence and for ensuring that acceptable standards of market conduct and performance are maintained by licensed financial institutions.

16th Annual Insurance Education Conference The issue of market conduct will not go away simply because insurers think it’s a non-starter. Regulators in some jurisdictions like Trinidad and Tobago, Jamaica and Barbados have in place guidelines for insurance to follow. For the most part, these guidelines represent the minimum standards for the settlement of Motor Vehicle claims. As the market conduct compliance consultant I know that regulator and insurer views may differ as to the legality, fairness or on reasonableness of a particular practice or action. I have also heard some who say, with justification, that the regulator appears “all bark and no bite.”

Know the critical areas

Research has shown that market conduct problems in insurance occur most frequently in areas of: 1) Sales and Marketing; 2) Underwriting; 3) Rating; and 4) Claims Handling.

Sales and advertising problems very generally characterized by misrepresenting policy provisions and future dividends, and encouraging inappropriate replacement of policies. Underwriting abuses constituted unfair discrimination in adverse selection, and the failure of providing adequate notification of policy cancellations and premium refunds. Rating issues comprise violations of rate standards. Unfair claims practices included misrepresenting claimants’ rights, underwriting at the time of the claim, failure to answer correspondence, forcing legitimate claims to litigation, and pressuring claimants to accept unreasonably low settlements.

But how well are we doing?

In the Antiguan case of Sylvester Scotland and General Insurance Company Ltd (2004), Madam Justice Rita Joseph-Olivetti of the High Court

of Justice wrote; “In my experience, insurance companies all too often prolong decisions on claims for no good reason. This practice must be frowned upon as it ignores the rights of customers, is against good business standards and inevitably leads to litigation which could be avoided if a more reasonable approach is taken, for example, the same swift approach used when pursuing late premiums.” In a Trinidad and Tobago case relating to the management of an insurance company, Peter A. Rajkumar J: in Goodwill General Insurance Company Limited (In Liquidation) v. Winchester et al (2009) [See Case Study – AIIC Education Conference 2012, Belize] said; “This was prima facie an unacceptable way to run an insurance company, far less one that offered Motor Vehicle


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insurance within a statutory framework designed for the benefit of the public. It demanded investigation.” Rajkumar J: found two directors of Goodwill were jointly and severally liable for the sum of TT$20,000,000.00 in respect of Goodwill’s outstanding insurance debts and liabilities (out of the sum of TT$23,590,738.39) incurred by reason of their conduct. The courts have expressed grave concerns as to how often this type of action occurs in dealing with insurance companies and insurance claims. The courts are only cognizant of the cases which come before them. If claimants are not able to withstand the pressure to settle on the terms and conditions originally offered such cases would not receive the attention of the courts. The question remains; how many individuals have been unable to withstand the financial and psychological pressure of these tactics?

In some markets such as Trinidad and Tobago, Jamaica and Barbados, regulators have established complaint reporting systems. This system requires insurers to file information about the complaint and its resolution. It is expected that this system will be followed in the other markets.

Market Conduct

In essence, the term “market conduct” represents increasingly specific aspects of regulators policing of insurers market practices. Market conduct audits may consist of “desk exams”, “testing” and other methods of gathering information about insurer market practices. They made the routine or periodic, comprehensive market conduct audits or targeted audits. Like routine financial examinations, routine market conduct audits are typically used to detect noncompliance and problems as well as to investigate specific practices. Some indications of regulatory noncompliance are 24

problems triggered targeted audits, and are most likely to be confined to a specific period of business practices. Market conduct audits should be focused on companies that are engaging in unfair or deceptive business practices, rather than those insurance that infrequently and unintentionally treat policyholders unfairly. In other words, regulators tend to focus on the pattern of unfair or deceptive practices and actions, rather than inadvertent and occasional mistakes. Generally, market conduct auditors check to see that claims covered under a policy are paid within a reasonable period of time and conform with promised coverage, as stated in the policy. Unfair marketing and underwriting practices are more difficult to police as documented evidence of such abuse may be lacking. Auditors review policy declinations, cancellations and non-renewals to ensure that the

16th Annual Insurance Education Conference company is not engaging in unfair discrimination, and that it is providing proper notice to proposers and insureds. Auditors may also review repudiation of liability and review correspondence and training material. As an example, the Barbados Financial Services Commission in its Guideline on Market Conduct notes that it expects regulated insurers and intermediaries to observe high standards of integrity and fair dealing in the conduct of its business. The Commission will evaluate compliance with this Guideline when it performs on-site inspections and when it investigates complaints.

Know your operations

Over the years, I have heard from the detractors of market conduct audits, who often allege that the audit is to technical or nitpicky, and some can be. However, there is another side of that allegation. First, all of these “technical” issues – carelessness in the use of policy forms or vagueness about licensing, failure to make timely payment of claims – amount to indicators of poor management, as well as poor controls the process of the company. Poor management leads to customer dissatisfaction, which can lead to an increase in complaints and trigger a market conduct audit. Poor internal systems or practices can cause complaints about policy language, claim treatment or policyholder service. This can lead to major management concerns, as well as insolvency. While identifying "problem" companies, in market conduct audit can also reverse bad practices and help companies compete properly.

A company that is subject to market conduct audits or has filed a compliance audit report has a right to know, on a timely basis, what the regulators intends to do with the compliance report. There should be constraints on the ability of regulators who do not act with the same expedience they expect from the industry. If the regulator finds nothing more than simple errors, contact should be minimal. Finally, there is the question of enforcement. Are financial penalties and regulatory remedies fair and appropriate? Do they provide insurers with proper incentives to correct problems? The answers will become more pressing in the years ahead as regulators pursue their vision of convergence in financial services. Clearly, not everyone agrees on the merits of market conduct audits. In fact, there may be a new wave of challenges to regulators as companies become more vocal. But the question is not so much whether these audits are being good or bad idea; rather, it is how they are done. There is nothing wrong with being tough. What give the market conduct auditor credibility is fairness, and an understanding of practical and relevant regulation.

The scope of market conduct audits has also been a particularly significant issue, at least with insurers. Some insurers have expressed a concern that audits are too broad thus not suitable for regulatory review. Regulators, obviously, may have a much different view of this issue. Some aspects of a conscientiously conducted market conduct audit can be accomplished in the office, while others cannot. Often, auditors need to delve deeper into what is actually occurring in the marketplace and the best way to do this is through an on-site audit. On site reviews provide the best means to ascertain how the company is actually underwriting its risk and handling its claims. Generally, insurers should be encouraged by regulators to self evaluate and, more importantly, take corrective action when necessary. Without the impetus of a market conduct audit or bad faith litigation. The continuous implementation of compliance programs can be seen as a reflection of the company’s commitment to ethical business practices. 25

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Matters of Confidentiality To most of us privacy and confidentiality are of great concern, particularly when it’s our own information. By Cecil Jaipaul


s consumers, we all want insurers, intermediaries and their employees to respect our privacy and maintain confidentiality when they collect, use, maintain, or disclose the information that is about us.

authorized to use them because the data are classified to protect the owner’s privacy. It’s been said that privacy applies to the person, whereas confidentiality applies to the data.

According to the English dictionary, ‘privacy’ means the state of being free from intrusion or disturbance in one’s private life; “having the right of privacy.” Confidentiality means that information and documents are limited to the persons

Insurers and insurance professionals must adhere to confidentiality laws, regulations and guidelines that require them to safeguard the information they collect, use, maintain, or disclose. Those who fail to comply with those rules face tremendous


The rules and behavior

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Commerce Members’ Code of Conduct & Business Principles require members to “preserve the confidentiality and trustworthiness of business relationships, divulging only such information as may be required by law or authorized by the customer.”

financial penalties and consequences. Yet we still often hear of violations of confidentiality. There isn’t one reason, nor is there a single solution, but there are a couple principles we can apply to influence behavior within our own organizations to help create a culture of confidentiality.


So, if we look to insurance regulators, we may get guidance from the insurance regulator of Trinidad and Tobago. The Central Bank of Trinidad and Tobago in its Privacy Policy states that it is dedicated to protecting personal information and will make every reasonable effort to handle collected information appropriately. All information collected, as well as related requests, will be handled as carefully and efficiently as possible in accordance with all applicable laws.

In the insurance industry, many breach of privacy violations are inadvertent and result of individuals becoming inattentive, not understanding the significance, or from employers’ failure to keep them informed of their duties responsibilities for protecting consumer information. Our own expectations of how our personal information will be handled may be the best guide when developing a Privacy Policy. These expectations are;

The Barbados Financial Services Commission in its Guideline on Market Conduct reminds regulated insurers and intermediaries that information, which a customer might reasonably expect to be confidential, should be treated as such. Any sharing of such information should be done in a confidential manner taking into account the nature of the business relationship.

1. The information will be collected, used, maintained or disclosed only for its intended business purpose. 2. The insurer we share our information with has created policies and conducts ongoing training of its employees. 3. The employees of the insurer will apply the safeguards communicated.

Additionally, the Trinidad & Tobago Chamber of Industry &

4. The insurer conducts ongoing evaluation of the safeguards put in place to meet the requirements. 5. We expect that if our information is not safeguarded and is used or disclosed inappropriately, we will be informed and the insurer will address that risk and take appropriate remedial action.

You take your business seriously.

Self evaluation

In the absence of regulation, self-regulation is imperative. Every now and then it’s a good practice to evaluate our own behavior and practices. Do you as an insurance professional fulfill these same expectations you have for others who handle your information when you collect, use, maintain, or disclose confidential information of others? Do you have two sets of standards that you live by, and if so, why?

So do we. • •

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Whenever individual insurance practitioners are responsible for defining and then policing their own standards, there are some critical questions they should be asking themselves to ensure that they as well as their employers are protected. How do I handle confidential customer information? • Do I belong to a professional association that has its own code of ethics?

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• Am I required in my organization to sign confidentiality agreements to protect customer information?

this trend? As insurers seek to define the key market differentiators, they frequently identify things such as leadership, adaptability to change, speed of innovation and compliance.

• What do you do to ensure confidential customer information is protected?

While this trend is encouraging with clear benefits for insurers, employees, and customers served, there is a little caveat emptor caution I would like to highlight.

• How do I handle breaches of privacy or confidentiality?


One of the emerging trends in the field of privacy compliance is outsourcing – a far cry from a decade ago. What is driving

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The consultant to whom these functions are outsourced will be privy to confidential matters, private information, company secrets and closely held strategies. Can the consultant be trusted? It is a good question and one that insurers should thoroughly explore.

Principles to live by

Two principles we should apply to help us influence and create a confidential culture are to be attentive and to be accountable. Being attentive means to be aware, evaluate, or to be thoughtful and listen. It’s easy to become careless as we become comfortable in our roles, but it’s important that we do not allow ourselves to become lazy, to take shortcuts, or to not remain informed of current expectations through the policies and education communicated to us by the organizations we work for. We must also be accountable and responsible when we identify issues or have made an error in how we managed or completed an activity. It’s important that we report issues promptly so that the designated individuals within the organization can take the necessary actions to minimize any potential risk or harm to customers and the organization. We can all help develop the right culture in our organizations by being attentive and accountable.

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AIIC Conference magazine 2013  

Association of Insurance Institutes of the Caribbean conference magazine 2013.