CINICO launches new home insurance policy with Parametric Coverage

The Cayman Islands National Insurance Company (CINICO) has announced it is now offering home insurance policy with Parametric Coverage.

This parametric solution was created to pay 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.

Within 14-21 days of the passage of a hurricane, homeowners would be able to receive a payment to help with expenses not normally covered by insurance, CINICO explained.

Whether the home is damaged or not, home insurance policy holders would receive help for additional groceries, securing the premises, and cleanup expenses after the passage of the storm.

CINICO’s CEO, Michael Gayle said: “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.”

According to the announcement, CINICO’s Parametric coverage is not only for home insurance policy holders, as it is also available as a separate stand-alone policy for homeowners who have home insurance policies whether insured with CINICO or not, and can be used to offset the impact of policy deductibles.

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.

“CINICO is raising the bar in the insurance industry, and fulfilling our promise to bring innovation to the insurance industry,” Gayle added.

He continued: “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.”

This homeowners insurance venture is part of CINICO’s mission as the government-owned insurance company to ensure a resilient insurance sector.

Gayle stated: “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.

“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.”

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 part of the company’s broader expansion plan to ensure that Cayman Islands’ homeowners and residents have access to sufficient insurance capacity and coverage in an increasingly vulnerable insurance market.

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