Post Ivan Report Heralds Changes To Cayman Insurance Legislation

by Amanda Banks, Tax-News.com, London

22 July 2005

A report detailing the impact of Hurricane Ivan on the Cayman domestic insurance industry was released this week to the private sector and general public as part of efforts to enhance existing insurance legislation and improve consumer protection measures.

The 36-page report titled, 'A Review of the Domestic Insurance Industry Post Ivan', was prepared by Sir Alan Traill, a board member of the Cayman Islands Monetary Authority (CIMA) along with Terence Fairs, the principal of Fairs Reinsurance Consulting, with assistance from members of the insurance division of CIMA.

“The completion of this report is an important step in the process of learning from Ivan and making improvements for both the industry and consumers,” commented Kenneth Jefferson, Financial Secretary.

“Government believes that consultation is the next logical step and the broad release of the report will definitely help in that regard. We are grateful for the hard work of Sir Alan and the others who were involved in the report’s preparation," he added.

The report covers a full range of subjects including deductibles, loss adjustment, premium affordability and special considerations for residential, business and automobile insurance. It also addresses the business practices of companies providing domestic insurance.

Following its review of the report, Cabinet has advised that CIMA, under Sir Alan Traill’s leadership, should spearhead a process of consultation with the insurance industry as a means of identifying areas where legislation needs to be amended or introduced. Similarly, the Portfolio of Finance & Economics will accept feedback on the report and its recommendations from the broader business community and individuals, to be considered as part of the consultation process.

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