CINICO Unveils New Home Insurance Policy With First-In-Market Parametric Coverage
Michael Gayle, CEO CINICO
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The Cayman Islands National Insurance Company (CINICO), has announced that as of 9 August 2024, they will be offering home insurance policies featuring a first-in-market benefit, Parametric Insurance coverage, which pays out pre-agreed amounts automatically to cover incidental expenses, without the need to submit a claim in the event of a hurricane of a Category 3 or above, which passes within a specified distance from the Cayman Islands.
This means homeowners can receive a payment, typically within 14-21 days of the passage of a hurricane to help with expenses not normally covered by insurance, such as additional groceries, securing the premises, and cleanup expenses after the passage of the storm, whether the home is damaged or not.
CINICO’s new home insurance policy with Parametric Insurance coverage follows the launch of their new motor insurance product in March 2024. Both insurance offerings are the outcomes of CINICO’s broader expansion plan announced in 2022 aimed at ensuring that Cayman Islands’ homeowners and residents have access to sufficient insurance capacity and coverage in an increasingly vulnerable insurance market.
CINICO’s CEO, Michael Gayle explained, “We are thrilled to offer home insurance and include Parametric coverage as a standard feature for new policies. Outside of the Cayman Islands, Parametric Insurance cover is sometimes available to home insurance policy owners at an additional cost. However, this benefit will be included for the first time in Cayman as a standard feature of CINICO’s home insurance policies.”
New home insurance policy holders aren’t the only ones that benefit from CINICO’s Parametric coverage. It is also available as a separate stand-alone policy for homeowners with existing home insurance policies whether insured with CINICO or not, and can be used to offset the impact of policy deductibles.
Mr. Gayle is on the Board of the Caribbean Catastrophe Risk Insurance Facility (CCRIF SPC) which provides Parametric coverage to many Caribbean and Central American governments which will pay out more than US$80 million to countries affected by Hurricane Beryl, all within 14 days after the passing of the hurricane.
Mr. Gayle continued, “CINICO is raising the bar in the insurance industry, and fulfilling our promise to bring innovation to the insurance industry. Providing Cayman Islands’ homeowners with reliable and timely support, especially in the face of hurricanes, helps achieve that goal. By including Parametric Insurance coverage as a standard feature, CINICO ensures that homeowners have access to swift, reliable support when they need it most.”
He also noted that CINICO’s venture into homeowners insurance fulfils its mission as the government-owned insurance company to ensure a resilient insurance sector.
“Reinsurance restrictions have imposed limits on the number of policies that we can issue for the balance of this year, particularly in the face of a potentially active hurricane season,” Mr. Gayle explained. “We expect our Parametric product to be a successful addition to the insurance market and anticipate having to seek additional capacity in 2025 to meet the demand. Innovation is critical to the resilience of the insurance sector in Cayman and we will continue to look for more ways to improve products and benefits.”
Premier and Minister for Finance, Hon. Juliana O’Connor-Connolly, who holds responsibility for CINICO, welcomes this new advancement in the Cayman Islands insurance market.
Hon. Premier O’Connor-Connolly said, “A strong and stable insurance industry is vital for the resilience of our islands. The inclusion of parametric coverage as a standard feature in CINICO’s new home insurance policy, demonstrates a significant step forward in ensuring our residents are well-protected.”
CINICO members and new customers can find out more about the new motor and home insurance policies by visiting www.cinico.ky, calling 345-949-8101 or emailing [email protected].
