October 23, 2019
“The past year was challenging but one in which we experienced exceptional growth,” stated by Chairman, Mrs. Natalia Gobin-Gunter, at the 3rd Annual General Meeting of Key Insurance Company Limited (KEY). She added that despite the increase in growth there was a sharp rise in the company’s claim experience. Consequently, management responded with an in-depth strategic review of all operations. Furthermore, a more conservative and risk based approach to underwriting screening process was adopted in 2019. The goal is to reduce the claims experience to result in a more profitable organization.
Mrs. Miles Masterton, Managing Director, highlighted that in order to reverse the negative loss trajectory, the company embarked on a number of initiatives for the FY2018:-
- Change in risk appetite and preferred business classes
- Underwriting Department was reorganized and restructured
- Risk Management Framework
Mrs. Miles Masterton listed some of the actions taken in FY2018 to stem the losses from higher risk individuals as:
- Reduced limits of liability
- Limited coverage
- Increased deductibles
- Increased premiums
- New business written in the October to December period over the prior year reduced by 20%
The managing director also highlighted the following initiatives throughout FY2018:
- Risk management unit was established
- Proactive monitoring of Risk
- Assessment of the Company’s Risk premium profile shift for correction
- Overhaul of Systems Department
- Investment in technology to improve service and aid with growth and efficiency agenda
- Using technology to deliver our products to a wider cross section of clients
- Easy renewal online
Mrs. Masterton also noted that the company made traction in the Non-Motor Segment of the Business:
- Increase in non-motor business
- Travel insurance
- Group personal accident and personal accident insurance for individuals
- Renter’s and homeowners contents insurance
- Cyber liability insurance
Mrs. Sandra Masterton noted, “We are confident that with various measures in line with our turn around plan, we will stem the negative trajectory and restore the company to profitability.”
Lastly, Finance Director, Jacqueline Johnson, she reported on the financial performance of the Company for the year ended December 31, 2018. She highlighted the Company boasted growth in gross premium of $1.8 billion from $1.4 billion, marking the third successive year in which the Company recorded revenues in excess of one billion dollars. Claims expense for the period increased significantly to $$1.1 billion from $334.1 million the year before. This translated to the Company experiencing a net loss of $162.66 million compared to $42.66million reported a year earlier.
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