Regional insurance bosses tackle FTAA, reinsurance in DR

The Insurance Association of the Caribbean holds its annual rendezvous for the first time in a Spanish speaking territory — the Dominican Republic (DR) next week — from 8-10 June. The IAC broke new ground last year when the conference was held in Miami, USA, and now it’s on to the DR.

The IAC formed in 1974 last held its conference in Trinidad and Tobago in 2000. All past conferences until last year were held within the English speaking Caribbean so it would appear that that this regional body has recognised that it must now seek to embrace all those territories that occupy the geographical space that is known as the Caribbean. When the IAC was formed nearly 30 years ago, the insurance executives felt that they should mirror what was taking place within the integration movement on the heels of the Treaty of Chaguaramas.

It was also a time when there was a strong nationalistic feeling within the region and localisation of the banks and insurance companies was gathering steam. While in the larger markets- Jamaica, Trinidad and Tobago and Barbados there already existed local insurance associations, the IAC was seen as the body that would speak on behalf of the insurance industry in the region at the level of Caricom on matters that affected intra-regional trade and the need for harmonisation of laws. Initially, conferences were held every two years but this quickly changed to annually since they were used primarily to educate and disseminate knowledge on technical insurance matters and they became the ideal forum to share experiences on current trends in the insurance business. The IAC conference soon became a “must attend event” for persons doing business in the Caribbean and it brought insurance executives in one place so that foreign insurance and re-insurance brokers, re-insurers, software developers and service providers seized the opportunity to meet and discuss business. The alternative is a longer travel schedule to visit these executives in their own offices and it was for this reason in particular the IAC conference was seen as a place to meet and do business rather than a forum to learn and gain new insights into developments in the international market place.

For persons who attend the major international insurance conferences, the IAC conference now joins the club where the cost of attending is justified by the business done. The IAC Conference continues to attract high attendance between 500-600 registrants where approximately one-half will come from outside the region and they will only continue to come if there is opportunity for business rather than an emphasis on classroom type lectures. That is the reality and the IAC had to take this into account when they frame their programme so as to attract participants. In the light of everyone having to justify expenditure, the IAC will only be able to compete with other insurance conferences if they are able to provide a good venue, topics and speakers that will sell the conference and importantly if key decision makers in the region continue to attend.

The DR is a venue that many persons who usually attend the IAC conferences have not visited so its newness is in itself an attraction. The organisers have chosen a resort in Punta Cana so it is mixing business with pleasure. The plenary sessions have been split into life and non-life topics that run concurrently and speakers will address issues like legislative challenges around the Caribbean, fraud investigations, kidnapping and asset protection, health and wellness, new treatments and their impact on healthcare costs and pension fund management. The IAC has gone further this year in having a forum where senior decision makers can deal with the pressing issues of the CSME, GATS, FTAA and their likely impact on the regional insurance industry.

The intention of this session is to alert the region to the implications of these ongoing trade negotiations and how strategies could be developed to position the industry to cope. It promises to be informative without the technical jargon and if nothing else is achieved, it hopes that the region’s insurance leaders will take a keen interest in the future negotiations of the GATS and FTAA and even try to influence their outcome rather than be bystanders to merely implement what has been agreed. The Insurance Association of the Caribbean (IAC) which has its headquarters in Barbados has at long last gained recognition at the Caricom level from 2001. It now has status within the Caricom framework and structure for consultation on financial matters and can attend meetings of the Council for Finance and Planning (COFAP). It is therefore better positioned to make an intervention on matters of finance affecting the region and may even be able to have its views known on trade matters at COTED.

As delegates meet in the Dominican Republic to attend the IAC Conference, re-insurers will once more stress the need for good underwriting results and pricing stability in all classes of insurance business to the regional insurance industry. As the hurricane season approaches they will be viewing the weather forecasts with some nervousness until November. The region is very exposed and the continuing tightness in the supply and demand of re-insurance could be further aggravated by any major event and bring pressure on an already fragile situation. Nonetheless, it is also an opportunity to renew friendships and cement relationships. It is also a time to make new friends that may turn into a business relationship over time. It is a forum to gain new insights into the insurance business and this new overture into the Spanish speaking Caribbean could only serve to expand the IAC horizons.

E-mail: daquing@cablenett.net