BASSETERRE, St. Kitts - AS a number of companies continue to look at areas in cutting costs while remaining competitive within the business environment, the National Caribbean Insurance Co. Ltd. (NCI) has announced that plans are on the front burner to expand within the market.
This revelation was made in an exclusive interview with the company’s General Manager, Judith Attong, who said that the insurance sector is rapidly becoming more competitive but her company has sought to remain viable through expansion in a number of areas.
Attong stated that the current financial year would end in June, while declaring that 2010 has been very challenging. She said most of the challenges and difficulties that arose within the insurance sector resulted from the collapse of British American and Clico Insurance Companies, which forced regional governments to implement new laws and regulations to ensure there would not be a repetition.
“Last year we got this book from government indicating the new rules and regulations that will govern the insurance sector. One of the regulations is that we must change our auditors every three years. This means that you do not become too attached to auditors and to safeguard the sector, taking into consideration what has occurred over the past few years,” she said.
The NCI GM admitted that the new regulations had affected her company, but noted that they were able to educate the public on the numerous benefits being offered in the sector.
“I think, basically, the public understands and knows the importance of insurance; however, it is only for in case something happens. They are not like the Anguillans, whereby it is much more difficult to convince persons there about the benefits of insurance,” she said.
She claimed that the future of the insurance industry is threatened because of the impact of AIDS and violence, noting that these societal scourges continue to eliminate young men and women.
“I can tell you that with the AIDS and violence that we have going on, it means that people may have to support themselves…as with the young people dying and the old people living longer there will be some challenges and difficulties. You can’t see the support, the money to support these older people,” she said.
Attong drew reference to England, which she said has recently increased its retirement age to 70. She noted that with the growing social and other challenges, there are not enough financial resources to address a number of things because the contributions by young people have been severely affected, owing to many of them being unemployed.
“No money in the kitty to pay the people. The kitty is empty as there aren’t enough young people contributing. And with those contributing, the question is…would they be enough to contribute that can help?” Attong said.
“We do have pension schemes but we firmly believe that immunity is the way to go in these days,” she added.
The GM was tight lipped on the extent and level of expansion, noting that like any other insurance company they would have to seek alternative ways in keeping her company competitive within the market. She added that while some companies have reduced staff they were able to increase theirs.
She explained that Sudeakka Francis, who is the company’s Marketing and Public Relations Officer, has been tasked with implementing a number of new innovative and creative marketing initiatives with the view of increasing market shares. She also expressed satisfaction with the level of success that Francis has been able to attract through her work in the company.
She stated that her company is venturing into real estate, adding that they currently have 20 acres which will be used in this development.
“We have 20 acres which we will use for real estate, 15 acres in the Ross University area while the other five acres is situated in the Windsor University area.”
Attong made reference to statements that were made late last year by her Managing Director Sir Edmund Lawrence. He said that within the 2010 publication of The Banker, there are 9 442 banks in the United States of America and 1,000,006 banks in the World and warned shareholders not to assist anybody to undermine their bank.
“In the United States of America, out of the 9 442 banks 175 banks rank above the St. Kitts-Nevis-National Bank…your bank. In the world, starting from the top, which is Bank of America. National Bank ranks 1 089 out of one million and six,” Lawrence was quoted as saying.
“If you look at it another way, in the United States of America, 9 267 banks rank after the St. Kitts-Nevis-Anguilla National Bank. In the World, 998,917 banks rank below your bank out of the one million and six banks,” he added.
