NAGICO Insurance (Bahamas) Limited is looking to exploit its regional pull and take on larger polices, arguing there is more than $100 million worth of policies it can "bring back" to this country. Since launching late last year, the new player in the insurance arena expects to nearly double its workforce in The Bahamas by the end of 2013. While the firm wouldn't get into specific numbers, top management said it has set targets on the road to becoming a "significant player" in the industry. "We are neither hungry nor desperate. We know this business very well," said Vibert Williams, the managing director at NAGICO. "We are learning about The Bahamas and developing relationships.
We have written quite a number of business already." The insurance executive identified a particular opportunity in writing larger policies. He said there is a "lack of capacity" at the moment for policies running into the many millions of dollars. "If you want to insure a $10 million condo, for example, companies will have to approach reinsurers for support," he said. "The balance sheets are fairly small and they are not liquid enough to handle it. Our structure is different and vast, we can write something for $20 million, which means we can potentially be more competitive. So it is an opportunity for growth.
It also means that business stays in The Bahamas. The business is written here and stays here." Noting that NAGICO (Bahamas) has written "a few significant policies so far", Williams speculated that at least $100 million worth of policies for high-end residential or commercial properties are insured externally. "If we can bring some back to the island, it is good for everyone," he said. However, not everyone is pleased with the new player's approach. Patrick Ward, the president of Bahamas First, called NAGICO's claim regarding larger policies "disappointing". There are companies in The Bahamas, like Bahamas First, that can write multimillion-dollar policies.
He felt there was "no evidence" to suggest that local firms cannot handle larger polices and making those statements "won't engender goodwill". Thus far, Ward said there is an awareness of NAGICO in the Bahamian market, although at this point it hasn't made too much of a splash. "In my personal view, we have too many players already," he told Guardian Business yesterday. "Whether they fit in here will depend ultimately on whether they can meet consumer demands. The consumer will decide which companies are going to survive, and which ones are not."
NAGICO Insurance (Bahamas) Limited, headquartered in St. Maarten, believes its hefty balance sheet and presence in 20 territories should make it a force to be reckoned with in any country. Williams said that the firm is content taking its time, getting the right customers and delivering excellent customer service. While NAGICO might be the "new kid on the block" in The Bahamas, the managing director felt the industry will only benefit from more competitors offering different services and price points. In the end, Bahamians should have better choices and scope of service for their insurance needs.
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