CINICO will offer insurance for all in great expansion

A press release issued on Wednesday said that by the end of this year, the Cayman Islands National Insurance Company (CINICO) would begin offering coverage to younger, healthier residents working in the private sector, followed by a plan to retirees and a medical insurance option for public servants, as well as new damage and property insurance products.

“Over the 14-year period between 2009 and 2023, major government health care costs are forecast to rise 120%, from nearly $91 million in 2009 to just under $200 million in 2023,” Saunders said, describing one of the motivating factors to expand CINICO.

“Medical care costs represent an average of 19% of the total operating expenses of the central government, which indicates that it is increasingly difficult for the public treasury to sustain the rising costs,” he said, adding that “it is time to for CINICO to truly become an insurance provider”.

“The potential has been there and now it needs to be harnessed to give the public more insurance options (health, property and auto) that they need,” he said.

“This is especially true with regard to health insurance, which is becoming increasingly expensive, with more and more of our retirees excluded due to pre-existing conditions, or simply aging at age 65 from private insurance plans. This places an unbearable burden on our retirees, which then falls on the government to bear.”

Saunders said expanding CINICO will reduce these costs and bring health care to more people and allow seniors to age with health and dignity. He said he hoped CINICO would “eventually become the insurance provider of choice for all residents of the Cayman Islands.”

The minister explained that the expansion, especially of health insurance, to a broader population will achieve several government objectives and meet the strategic political objectives of the PACT administration “of ensuring an equitable, sustainable and successful health system, as well as providing solutions,” he said. the said.

“At the basic level, we are delivering on our promise to provide the public with an option that is affordable and includes a mechanism to accommodate pre-existing condition coverage for qualifying Caymanian retirees,” Saunders said, adding that this will diversify the profile risk of CINICO. and by extension the risk to the government.

He said the funds for the expansion had been approved by Cabinet and would be voted on at the next finance committee.

“CINICO currently has enough surplus capital to fund planned health insurance expansions,” he said. “However, CINICO will need additional capital for planned property and casualty expansions. On Tuesday, April 5, the Cabinet approved CINICO’s expansion plans and the required complementary financing of $10.35 million… The approval of these funds will go to the next session of the Finance Committee, which is scheduled for May”.

The money will be split between this year and next: $5.35 million in 2022 and $5 million in 2023.

Deputy Prime Minister Saunders noted that the expansion of the national insurance company’s products would also protect residents from being left without coverage in the event of further closures in the private insurance sector.

“In December 2021, Generali Worldwide, one of the largest health insurance providers in the Cayman Islands, withdrew its business from the Cayman Islands market,” Saunders said. “The recall was a shock to the market as many individuals and businesses had to find new health insurance providers and people, especially those with pre-existing conditions, found it difficult to obtain affordable health insurance.”

He added: “To mitigate similar impacts to the Cayman Islands market in the future, it is important that the government is in a position to be able to provide individuals and businesses with the choice of affordable health, auto and property insurance.”

CINICO CEO Michael Gayle said the team was looking forward to the expansion.

“Health care costs continue to rise, but we are confident that by working with our sister organization, the Cayman Islands Health Services Authority, and third-party medical providers with whom we will enter into a Preferred Provider Network agreement, we will collectively we will be able to play a role in helping to bring some stability to health care costs here in the Cayman Islands,” he said.

“There are exciting times ahead at CINICO,” added Gayle.

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