News
January 31, 2014

Insurance Brokers to be first coverholder in SVG

Although already registered here for a number of years the first local Lloyd’s of London has approved local insurance entity ‘The Insurance Brokers’ to be its first coverholder in St Vincent and the Grenadines.{{more}}

Joe Sheridan, Chairman and chief executive officer (CEO) of Insurance Brokers made the announcement on Tuesday.

“We are very proud and honoured to be given this privilege,” Sheridan said during a press briefing.

He explained that a coverholder is a company or partnership authorized to enter into contracts of insurance and to issue insurance documentation on behalf of one or more Lloyd’s syndicates.

So for the first time, a local company will be able to accept and underwrite Lloyd’s policies within certain restrictive frameworks, Sheridan continued.

Lloyd’s was very cautious and very conservative, he said.

“And they make no bones about it – they say what they want to do and what they don’t want to do.”

The Insurance Brokers now joins the 2,500 coverholders around the world and nine that are spread throughout the region.

Lloyd’s, according to Sheridan stands for strength and they prefer customers who practice good risk management.

“They wouldn’t accept any and every property and any kind of risk,” Sheridan said.

“They will be very cautious to make sure it fits their requirements,” he added.

And this is expected to raise the standard within the insurance market locally, Sheridan said.

He said that there was a lot of talk within recent times, especially after the December floods, that that damage must not be allowed to happen again, however according to Sheridan once measures including the building code were enforced and the insurance industry also raised its standards, then there will be a change in the local insurance sector.

“We are looking forward to much more confidence in the insurance market because many persons have been uncomfortable about insurance,” the Insurance Broker’s CEO said.

Over the last three to four years, people’s confidence in the insurance sector had dropped, but this development should give it a major confidence boost, he said. (DD)