BusinessGrenada.com BusinessGrenada2019-2020 Issue 8 | Page 58

Insurance Insurance It’s Antillean Time Developed and pushed further by son and heir Kennie John. And now opening the way for the third generation of the John family to participate - present CEO Kennie John, is optimistic that his son will too, get involved in the family business and help push the fledgling Antillean Group to become a regional Life Insurance power house. Antillean formerly known as NEWIM recently went through a re-branding exercise Kennie explains “Companies, just like houses need solid infrastructure, So if you have a one story house and you want to extend it, sometimes the structure cannot take another level, so we had to rebuild the company structures. Our growth strategy is to become more prevalent in the Eastern Caribbean. The way we were set up could not support that but now we can. The new name came about from looking at the region. “Antilles” is an old name that describes the region and is also we feel very palatable (Lesser Antilles / Greater Antilles). When we did our research everyone had heard about the Antilles and knew it was a part of our history. So we chose the region as our identity hence Antillean struck a real chord with us. A wholesale Insurance product is referred to as a “Treaty” and a retail product is a “Policy”. Kennie’s path into the business was a Business Studies degree, becoming a member of the Chartered Insurance institute, and then working in the market in London as a reinsurance broker to hone his skills. “We have to be aware of what our wholesale mix is to make sure we are covered” John continues He recalls “On the business level my first true professional job was at the reinsurance “ Our growth strategy is to become more prevalent in the Eastern Caribbean “ F ormed by the highly decorated and awarded, local insurance “Super Agent” Chester John. level, after years being in the business, I then learned commercial Insurance which is what I do here, but its all linked…if you understand Actuarial Science and re-insurance, it all sets the level and tone of what happens right through to selling to the consumer. But what actually is Actuarial Science? According to Wikipedia : Actuarial Science is the discipline that applies mathematical and statistical methods to assess risk in insurance, finance and other industries and professions. Actuaries are professionals who are qualified in this field through intense education and application of mathematical modeling and experience. Initial studies have shown that not many people have actually studied Actuarial Sciences here in Grenada but it is a key asset to have according to Kennie John, as it enables one to look at their portfolio and restructure their business to support the facts. “A company may have more exposure to commercial business which represents high value from few clients” or conversely, “Residential homeowners coverage may represent many clients but with lower values, so we have to be aware of what our ins mix is so we can buy enough coverage. The interesting aspect is that in buying a treaty it is not just one insurer. There are many insurers who may buy for instance a 10%, a 20% an 18% that all combine to make the 100% required coverage. So we deal with a lot of insurers. And obviously have to deal with the international Brokers who work with us to get the best deals for our particular needs. At a company level like Antillean, I work with International brokers and supply them with quarterly figures of :- 1. Aggregates i.e the total quantity and sum of all buildings 2. The premiums and 3. The rates Those 3 things decide whether or not you are a good client for them. The re-insurers will likely run modeling programs and algorithms to determine how risk averse you are and if you fit in with their underwriting guidelines. It takes years in a relationship with them to build the mutual trust. 1. What they do to cover or secure you (Guardian / Prudential etc) or “Structuring your re-insurance program on modeling that sees where your exposure lies and whats at risk, so that you as a company, are covered, is a key component of the industry, and where Actuarial Sciences are applied“ adds Kennie. “In Insurance terms, The Caribbean as a region is small, however it does have one of the most expensive reinsurance phenomenas in the world because of our wind exposure. so geographically, yes, we in Grenada are probably at less risk than our neighbors in the north but we are judged as a region and not individual jurisdictions. 2. The region they are from (Nationwide, AIG etc) In short, Insurance companies at our level, buy wholesale insurance to sell retail. The need for reform in the industry is viewed however as a major priority. Whilst we are Most Insurance companies chose their name based on either:- PHOTO BY STEVE BRETT 58 www.businessgrenada.com www.businessgrenada.com www.businessgrenada.com 59 59