BusinessGrenada.com BusinessGrenada2019-2020 Issue 8 | Page 48

Insurance Your Insurance B usiness Grenada Magazine meets a leader in the local Insurance Industry, Mr. Ronald Hughes. and Tobago, bought a substantial stake in the business. Consequently, it was re-named Trans-Nemwil Insurance (Grenada) Ltd.” “To Insure or not to Insure”, is not the question. It is vitally important to In 2005, both Nemwil and Caribbean Home Insurance Co. Ltd. were purchased by Guardian Holdings Ltd. (GHL). The companies were consolidated and the emerging entity was PROTECT ONE’S ASSETS! Shifting trends are the waters which Ronald Hughes, Managing Director of Guardian General Insurance (OECS) Ltd., has to anticipate, prepare for and strategically navigate. He shares with BG the evolution of the company, his experience at the helm of the business and how his corporation maintains one of the foremost positions within the Grenadian market. Hughes began his career in Property and Casualty Insurance in 1984, with the Company then known as; Caribbean Insurance Co. Ltd. Over the years of the Company’s evolution a number of rebrands took place, with the final rebrand, as Guardian General Insurance (OECS) Ltd., occurring in 2015. The business operated successfully under that name; (Caribbean Insurance Co. Ltd.) for many years, but due to another company with a similar name, a decision was taken to rebrand the company to Trans-Caribbean Insurance Co. Ltd. Sometime during the early1990’s, there was a further rebranding of the organization when NEM (West Indies) Insurance Ltd. NEMWIL, domiciled in Trinidad 48 Ronald Hughes-Managing Director/CEO Guardian General www.businessgrenada.com Insurance (OECS) LTD “ is typically spared many of the devastating hurricanes which have plagued the northern Caribbean territories. This is particularly true for the marine sector, because it is regarded as a reasonably safe location for marine interests, during the hurricane season. Hurricane Ivan was an exception. Grenada is considered as a reasonably safe location for Marine Interests during the hurricane season Guardian General Insurance Ltd. Hughes explains the transition - “We retained our Trans-Nemwil brand as it was a strong brand, particularly in the aftermath of Hurricane Ivan, We were riding a crest of goodwill during this period and to re-brand then could have proved counterproductive.” Whilst continuing to trade under the Trans- Nemwil brand, operational procedures were being aligned with the parent company and, in 2015, a decision was taken to rebrand to Guardian General Insurance (OECS) Ltd. The inclusion of the Organization of Eastern Caribbean States (OECS), in the company name, is an important element. Its significance, he claims, is based on the future planned harmonized insurance legislation for the sub-region, as the Grenada office is destined to become the hub for The Guardian Group’s Property & Casualty, as well as its Life, Health and Pensions operations, in the Eastern Caribbean. Grenada’s location at 12 degrees North of the Equator holds a favourable position in the minds of insurance underwriters, as it www.businessgrenada.com www.businessgrenada.com “ Meet Ronald Hughes ... A Leader in the Insurance Industry Guardian Hughes speaks of the Hurricane experience: “Undoubtedly the losses arising from Hurricane Ivan were the most significant challenge the company has ever faced, to date. We had close to thirteen hundred (1300) claims to address! Ninety eight percent (98%) of them were settled by 31st of Dec, 2004 (Ivan hit on 7th Sept. 2004) and the remaining two percent (2%) were settled by March 2005. We certainly benefited from this prompt response, as our aggregate exposure and premium income increased significantly. Following this major loss our reinsurance costs increased. The average property rate, prior to Hurricane Ivan, was approximately EC$6.00 per $1,000 subsequently rates climbed to $10.00 per $1,000 an almost 50% increase.” Hughes recalls, “rates remained static for some time however, pricing at that level, in this environment, is not sustainable, particularly with the large number of insurance companies trading in Grenada. At the time, there were approximately seventeen or eighteen Property & Casualty Insurers, serving a population of 110K, with very low insurance penetration.” 49 49