The Tribune

By NEIL HARTNELL

Tribune Business 
Editor

nhartnell@tribunemedia.net

The Bahamian general insurance industry is set to become even more crowded, Tribune Business can reveal, as an Antigua-based carrier moves to enter the underwriting market.

Insurance industry sources yesterday disclosed to this newspaper that Caribbean Alliance Insurance Company, which has a strong presence in the eastern Caribbean, had begun the process of seeking a licence from the Insurance Commission of the Bahamas to start underwriting business in this nation.

This was effectively confirmed by Asman Strann, Caribbean Alliance’s business manager and company director, who said work on entering the Bahamian property and casualty market had already begun.

When contacted by Tribune Business, he replied: “I’m not in a position to give you any details. It’s [entering the Bahamas] in the thinking, and some work has started already, but I’m not in possession of all the information.

“There’s someone working on it, but I’m not the one.”

When asked why Caribbean Alliance would be interested in entering the Bahamian market, he replied: “I would imagine it [the Bahamas] has fairly sizeable premium income, and if we open the opportunity we could add value to the rest of the market.

“We’re an A. M. Best rated company, and can bring added security. We’ll see how it goes.”

The Bahamian general insurance market generates more than $300 million in annual premium income, and industry executives said this made it the most lucrative in the Caribbean.

Patrick Ward, Bahamas First’s president and managing director, said that while he did not know whether Caribbean Alliance had applied to the Insurance Commission for a licence to underwrite risks in the Bahamas, he was aware of its interest in this nation.

“They have made no secret of their intention to expand their footprint into the northern Caribbean,” Mr Ward told Tribune Business, defining this area as the Cayman Islands, Jamaica and Turks & Caicos, as well as the Bahamas.

“I know a representative of the company has visited the Bahamas, Cayman and Turks & Caicos.”

What is clear is that Caribbean insurers are taking an increased interest in the Bahamas. Tribune Business previously revealed that Netherlands Antilles General Insurance Company (NAGICO) had obtained approval from the Insurance Commission of the Bahamas to start underwriting business.

This meant NAGICO is going head-to-head with Bahamas First, RoyalStar Assurance, Insurance Company of the Bahamas (ICB), Summit Insurance Company, Security & General and Insurance Company of the West Indies for market share in the property and casualty underwriting segment.

The potential arrival of Caribbean Alliance will further intensify competition, and could ultimately drive consolidation and result in some players being squeezed out.

“It would make it very crowded,” Mr Ward agreed. “I think we’re getting to that point [where the market is saturated]. The only that will happen is that it will continue to drive consolidation.

“But if you look at the premium dollars generated in the Bahamas it ranks top of the field in the English-speaking Caribbean. The Bahamas ranks at the top in terms of premium income generated annually.”

Arvind Baghel, the Insurance Commission’s head of supervision, did not return Tribune Business’s calls seeking comment.

But Caribbean Alliance has an ‘A-Excellent’ rating from A. M. Best, and a presence in Anguillla, Barbados, British Virgin Islands, Dominica, Grenada, Montserrat, St Kitts, St Lucia and St Vincent and the Grenadines, as well as Antigua.

It would have to write business in this nation through a Bahamian agent/broker, but Tribune Business was unable to identify that company.